Is the payable from Angry Chickz to the Member secured or unsecured?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Due to Member – During the year ended December 31, 2024 and for the period from June 9, 2023 and December 31, 2023, the Member advanced funds to the Company. No interest is charged on this advance, and it is unsecured. The payable is recorded as long term, as it is not expected to be paid within 12 months of the balance sheet date.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, funds advanced to Angry Chickz Franchising, LLC by its Member are considered unsecured. Specifically, these advances do not accrue interest. The payable is classified as long term because repayment is not anticipated within 12 months of the balance sheet date.
For a prospective Angry Chickz franchisee, this detail provides insight into the financial relationship between the franchisor and its parent company. The fact that the Member provides unsecured, interest-free advances suggests a degree of financial commitment from the parent company to support the franchising operations.
However, it's important to note that the financial statements included in the FDD are unaudited. This means that an independent certified public accountant has not verified the figures or expressed an opinion on their accuracy. Prospective franchisees should be aware of this limitation and consider it when evaluating the financial stability of Angry Chickz Franchising, LLC.