What was the bad debt expenses for Bb.Q Chicken in 2024?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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Consolidated Statements of Cash Flow December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net Income (loss) | $ (51,129) | $ 107,888 |
| Adjustment to reconcile net income (loss) to net cash | ||
| used in operating activities: | ||
| Depreciation & amortization | 402,980 | 368,402 |
| Bad debt expenses | 42,846 | 9,370 |
| Provision for inventory reserves | 12,320 | 12,350 |
| Increase/Decrease in accounts receivable | (2,108,010) | (2,266,137) |
| Increase/Decrease in due from parent | (2,016,520) | - |
| Increase/Decrease in inventory | 1,065,214 | (1,582,637) |
| Increase/Decrease in prepaid expenses | (171,458) | 91,641 |
| Increase/Decrease in interest receivable | (11,878) | (12,530) |
| Increase/Decrease in contract asset | (140,000) | - |
| Increase/Decrease in deferred tax asset | 56,705 | (97,335) |
| Increase/Decrease in accounts payable | 1,792,542 | 1,496,963 |
| Increase/Decrease in accrued expenses | 50,353 | 9,721 |
| Increase/Decrease in taxes payable | (9,627) | 14,290 |
| Increase/Decrease in royalty payable | 2,780,651 | (1,593,686) |
| Increase/Decrease in interest payable | 92,252 | 92,000 |
| Increase/Decrease in unearned revenue | (103,250) | (134,250) |
| Increase/Decrease in other current liabilities | 20,965 | (33,994) |
| Increase/Decrease in due to parent | - | 5,174,292 |
| Increase/Decrease in right of assets | 548,639 | (5,128,467) |
| Net cash provided by operating activities | 2,253,594 | (3,472,119) |
| Cash flows from investing activities: | ||
| Acquisition of new fixed assets | (437,360) | (611,641) |
| Acquisition of intangible assets | (173,901) | (9,350) |
| Increase/Decrease in loans to others | (308,836) | (230,916) |
| Increase/Decrease in other receivables | (198,295) | (11,103) |
| Increase/Decrease in security deposits | (274,094) | (10,708) |
| Net cash used in investing activities | (1,392,486) | (873,718) |
| Cash flows from financing activities: | ||
| Bank loan | (64,040) | (59,695) |
| Increase/Decrease in lease liabilities | (405,580) | 4,955,595 |
| Net cash provided by financing activities | (469,620) | 4,895,900 |
| Net increase(decrease) in cash | 391,488 | 550,063 |
| Cash, beginning of year | 1,999,340 | 1,449,277 |
| Cash, end of year | $ 2,390,828 | $ 1,999,340 |
| Supplemental cash flow disclosures : | ||
| - Interest paid | $ 40,024 | $ 51,979 |
| - Income taxes paid | $ 204,283 | $ 74,082 |
| - Conversion of AP, royalty payable, due to parent into equity | $ 14,231,561 | |
| See Acc |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the company's bad debt expenses in 2024 were $42,846. This figure is part of the cash flow statement, specifically within the adjustments to reconcile net income (loss) to net cash used in operating activities. In 2023, the bad debt expenses were $9,370.
Bad debt expenses typically represent the amount of accounts receivable that a company deems uncollectible. This can arise from customers who are unable to pay their debts due to financial difficulties or other reasons. Monitoring bad debt expenses is important for assessing the financial health of a company.
For a prospective Bb.Q Chicken franchisee, understanding these figures can provide insight into the company's financial management and risk assessment. While not a direct expense a franchisee would incur, it reflects on the overall financial stability of the franchisor. A significant increase in bad debt expenses could signal potential issues with the financial health of Bb.Q Chicken's customer base or its credit management practices.