What was the depreciation and amortization expense 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 act |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the depreciation and amortization expense for 2024 was $402,980. This figure is part of the adjustments made to reconcile net income (loss) to net cash used in operating activities. Depreciation and amortization are non-cash expenses that reflect the reduction in value of Bb.Q Chicken's assets over time.
For a prospective franchisee, understanding depreciation and amortization is crucial for assessing the company's financial health. While these expenses don't represent actual cash outflows, they do impact the net income and are important for tax purposes. Higher depreciation and amortization expenses can indicate significant investments in assets, which may be a positive sign of growth and expansion for Bb.Q Chicken.
It's also worth noting the trend in these expenses. In 2023, the depreciation and amortization expense was $368,402. The increase to $402,980 in 2024 suggests that Bb.Q Chicken may have acquired additional assets or that existing assets are being depreciated at a faster rate. Franchisees should consider this information in the context of the overall financial performance of the company and its strategic investments.