What was the amount of interest paid by Bb.Q Chicken in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | ||
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net Income (loss) | $ 107,888 | $ 94,548 | |
| Adjustment to reconcile net income (loss) to net cash | |||
| used in operating activities: | |||
| Depreciation & amortization | 368,402 | 233,324 | |
| Increase/Decrease in accounts receivable | (2,256,767) | (328,765) | |
| Increase/Decrease in inventories | (1,570,287) | (2,776,492) | |
| Increase/Decrease in prepaid expenses | 91,641 | 383,504 | |
| Increase/Decrease in interest receivable | (12,530) | (4,020) | |
| Increase/Decrease in due to parent | 5,174,292 | - | |
| Increase/Decrease in deferred tax asset | (97,335) | (132,543) | |
| Increase/Decrease in accounts payable | 1,496,963 | 2,442,936 | |
| Increase/Decrease in accrued expenses | 9,721 | (95,548) | |
| Increase/Decrease in taxes payable | 14,290 | 32,350 | |
| Increase/Decrease in royalty payable | (1,593,686) | 428,569 | |
| Increase/Decrease in interest payable | 92,000 | 92,000 | |
| Increase/Decrease in other current liabilities | (33,994) | 89,582 | |
| Increase/Decrease in unearned revenue | (134,250) | 166,250 | |
| Net cash provided by operating activities | 1,656,348 | 625,695 | |
| Cash flows from investing activities: | |||
| Acquisition of new fixed assets | (611,641) | (1,169,150) | |
| Acquisition of intangible asset | (9,350) | (38,251) | |
| Increase/Decrease in investment | - | (1,600,000) | |
| Increase/Decrease in loans to franchises | (230,916) | (185,927) | |
| Increase/Decrease in loans to others | (11,103) | 29,483 | |
| Increase/Decrease in security deposits | (10,708) | (36,015) | |
| Increase/Decrease in right of assets | (5,128,467) | (3,642,797) | |
| Net cash used in investing activities | (6,002,185) | (6,642,657) | |
| Cash flows from financing activities: | |||
| Bank loan | (59,695) | 473,269 | |
| Increase/Decrease in lease liabilities | 4,955,595 | 3,775,961 | |
| Net cash provided by financing activities | 4,895,900 | 4,249,230 | |
| Net increase(decrease) in cash | 550,063 | (1,767,732) | |
| Cash, beginning of year | 1,449,277 | 3,217,009 | |
| Cash, end of year | $ 1,999,340 | $ 1,449,277 | |
| Supplemental cash flow disclosures : | |||
| - Interest paid | $ 51,979 | $ 12,092 |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the interest paid in 2023 was $51,979. This figure is part of the supplemental cash flow disclosures within the financial statements. It reflects the actual cash outflow Bb.Q Chicken made for interest expenses during that year.
For a prospective franchisee, understanding the franchisor's interest payments can provide insight into the company's debt obligations and financial health. High interest payments might indicate significant borrowing, which could impact the franchisor's ability to support its franchisees or invest in system-wide improvements. Conversely, lower interest payments could suggest a more stable financial position.
It's important to note that this figure represents the interest paid by the franchisor, Bb.Q Chicken, and not the potential interest expenses a franchisee might incur when securing financing to open their own franchise location. Franchisees should conduct their own due diligence and financial planning to understand their potential borrowing costs.