What are contract assets for Angry Chickz?
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, contract assets are reported on the balance sheet. As of December 31, 2024, Angry Chickz had a current portion of contract assets valued at $1,000 and non-current contract assets of $58,250. In 2023, there were no contract assets listed. This indicates a change in how Angry Chickz recognizes and reports these assets as the franchise system has developed.
Contract assets typically arise when Angry Chickz has performed its obligations under a contract, such as providing the franchise license and intellectual property, but hasn't yet received payment from the franchisee. The current portion represents amounts expected to be collected within one year, while the non-current portion is for amounts expected beyond one year. These assets reflect the value of Angry Chickz's right to receive future payments for services already rendered.
For a prospective Angry Chickz franchisee, understanding contract assets is important because it reflects the financial relationship between the franchisee and franchisor. It shows how Angry Chickz recognizes revenue and manages its receivables. Franchisees should inquire about the specific circumstances under which contract assets are recorded and how they might impact the ongoing financial obligations between both parties. Reviewing these figures in the context of the full financial statements provides a more complete picture of the franchise's financial health and stability.