What is the total estimated contract liability balance for Angry Chickz as of December 31, 2024?
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 total contract liability balance as of December 31, 2024, is detailed in the balance sheets. The balance sheet provides a breakdown of current and non-current liabilities, including contract liabilities. Contract liabilities represent the obligation Angry Chickz has to provide services or goods to franchisees for which they have already received payment. These liabilities are separated into current (due within one year) and non-current portions. The total contract liability is the sum of these two.
Specifically, the balance sheet shows the current portion of the contract liability as $10,000 and the non-current portion as $386,250 as of December 31, 2024. The "current portion of contract liability" represents the amount of deferred revenue that Angry Chickz expects to recognize within the next 12 months. The "contract liability, net of current" represents the remaining deferred revenue not expected to be recognized within the next 12 months.
Therefore, the total contract liability for Angry Chickz as of December 31, 2024, is the sum of the current and non-current portions, which equals $396,250. This figure is important for prospective franchisees to understand because it reflects the financial obligations Angry Chickz has to its existing franchisees. A high contract liability balance could indicate strong sales and future revenue recognition, but it also represents a commitment that Angry Chickz must fulfill.