What was the balance of contract liabilities for Angry Chickz on December 31, 2024?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| BALANCE, June 9, 2023 (inception) Expenses recognized that were included in the contract assets at beginning of the year | $ - - |
|---|---|
| Increase, excluding amounts recognized as expenses during the period | - |
| BALANCE, December 31, 2023 Expenses recognized that were included in the contract assets at beginning of the year | - - |
| Increase, excluding amounts recognized as expenses during the period | 59,250 |
| BALANCE, December 31, 2024 | $ 59,250 |
| The following table reflects the change in contract liabilities from June 9, 2023 and December 31, 2024: | Contract Liabilities |
| BALANCE, June 9, 2023 (inception) | $ - |
| Revenue recognized that was included in contract liability at beginning of the year | - |
| Increase, excluding amounts recognized as revenue during the period | - |
| BALANCE, December 31, 2023 | - |
| Revenue recognized that was included in |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the balance of contract liabilities as of December 31, 2024, was $396,250. This figure represents the total amount of revenue that Angry Chickz had received but not yet recognized as earned as of that date. Contract liabilities arise when Angry Chickz receives payment for services or goods that will be delivered or performed in the future.
For a prospective Angry Chickz franchisee, this information provides insight into the company's financial health and revenue recognition practices. A significant contract liability balance could indicate strong future revenue streams, as it reflects payments received for future franchise services. It also demonstrates how Angry Chickz accounts for revenue, which is an important aspect of understanding the franchise's financial statements.
The FDD also details the changes in contract liabilities from June 9, 2023 (inception) to December 31, 2024, showing an increase excluding amounts recognized as revenue during the period of $396,250. This increase directly contributes to the final balance of $396,250 as of December 31, 2024. Understanding these changes can help a franchisee assess the growth and stability of Angry Chickz's revenue streams.