What was the member's deficit for Angry Chickz in 2023?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
100,000 |
Angry Chickz Franchising, LLC
Statements of Operations and Member's Deficit December 31, 2024 and Period from June 9, 2023 (inception) to December 31, 2023
| 2024 | 2023 | |
|---|---|---|
| REVENUE Royalties Brand fund Franchise fee | $ 154,415 51,466 3,750 | $ - - - |
| Total revenue | 209,631 | - |
| COSTS AND EXPENSES Salaries and wages Legal and professional fees Other operating expenses | 229,527 56,310 360,054 | 42,528 176,801 - |
| NET LOSS | (436,260) | (219,329) |
| MEMBER'S DEFICIT, beginnin |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the member's deficit at the end of 2023 was $(19,329). This figure represents the accumulated losses of Angry Chickz Franchising, LLC, which is a wholly-owned subsidiary of Angry Chickz, Inc. The deficit indicates the amount by which the company's liabilities and obligations exceeded its assets.
For a prospective franchisee, this information provides insight into the early financial performance of the Angry Chickz franchise system. A member's deficit, especially in the early stages of franchising (Angry Chickz Franchising, LLC was formed on June 9, 2023), is not uncommon as the company invests in establishing its brand and supporting its initial franchisees. It is important to note that the company opened its first franchise location in April 2024, so the 2023 deficit reflects pre-launch activities and expenses.
It's also important to consider the context provided in the FDD, which states that Angry Chickz Franchising, LLC has relied on resources from its member (Angry Chickz, Inc.) to support initial operations and that the member has committed to continue providing financial support during the start-up phase. This reliance on the parent company suggests that the deficit is being managed and supported, at least in the short term, by the resources of the member company. Prospective franchisees should monitor the company's financial statements in subsequent years to assess the trend in the member's deficit and evaluate the overall financial health and stability of the Angry Chickz franchise system.