What was the balance of contract liabilities for Angry Chickz on June 9, 2023 (inception)?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
s that we identified during the audit.
Irvine, California
May 6, 2025
Financial Statements
Angry Chickz Franchising, LLC
Balance Sheets December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS Cash Receivables and other current assets Current portion of contract asset | $ 187,344 8,507 1,000 | $ 100,000 - - |
| Total current assets | 196,851 | 100,000 |
| NON-CURRENT ASSETS Contract assets Property and equipment, net | 58,250 4,421 | - - |
| Total non-current assets | 62,671 | - |
| Total assets | $ 259,522 | $ 100,000 |
| LIABILITIES AND MEMBER'S DEFICIT | ||
| CURRENT LIABILITIES Accounts payable and accrued expenses Current portion of contract liability | $ 21,903 10,000 | $ 46,753 - |
| Total current liabilities | 31,903 | 46,753 |
| NON-CURRENT LIABILITIES Due to Member Contract liability, net of current | 79,705 386,250 | 72,576 - |
| Total long-term liabilitie |
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 on June 9, 2023 (inception) was $ -.
Contract liabilities represent the obligation of Angry Chickz to provide services or goods to franchisees for which they have already received payment. This liability is recognized as revenue as Angry Chickz fulfills its obligations over time. For a prospective franchisee, understanding the initial contract liabilities can provide insight into the company's financial obligations and how they manage deferred revenue.
The FDD also indicates that by December 31, 2024, the contract liabilities had increased to $396,250, reflecting an increase of $396,250 excluding amounts recognized as revenue during the period. This increase suggests a growing number of franchisees making payments for services or goods to be delivered in the future. Reviewing these figures over time can help a potential franchisee assess the financial stability and growth of Angry Chickz.