As of February 28, 2025, what was the total amount of Bb.Q Chicken's accounts receivable?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Feb 28, 25 | |
|---|---|
| ASSETS | |
| Current Assets | |
| Checking/Savings | |
| Total Checking/Savings | 2,275,313.11 |
| Total Accounts Receivable | 8,397,332.56 |
| Other Current Assets | |
| Inventory Asset | 5,285,991.83 |
| Allowance for Doubtful Accounts | -64,679.32 |
| Deferred Tax Assets | 1,211,397.00 |
| ROU Assets - ST | 256,702.91 |
| Contract Assets | 140,000.00 |
| Interest Receivable | 30,918.99 |
| Loan Receivable | 2,814,306.80 |
| Loan to Genesis BBQ Property LL | 13,066.45 |
| Loan to BBQ AMerica INC | 1,000.00 |
| Loan to Elysium Realty LLC | 13,885.00 |
| Investment | 95,000.00 |
| Initial Investment | 900,000.00 |
| Prepaid Expense | 28,032.50 |
| Englewood Offset | -9,000.00 |
| Total Other Current Assets | 10,716,622.16 |
| Total Current Assets | 21,389,267.83 |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the total accounts receivable as of February 28, 2025, was $8,397,332.56. This figure represents the amount of money owed to Bb.Q Chicken by its customers or franchisees for goods or services provided on credit. Accounts receivable is considered a current asset on the company's balance sheet, indicating its short-term liquidity. This means Bb.Q Chicken expected to convert these receivables into cash within a year. The allowance for doubtful accounts, which is ($64,679.32), represents an estimate of the amount of accounts receivable that may not be collectible. This is a contra-asset account that reduces the gross accounts receivable to its net realizable value.
For a prospective franchisee, understanding the accounts receivable of Bb.Q Chicken can provide insights into the company's financial health and its ability to manage credit extended to customers or franchisees. A high accounts receivable balance might indicate that Bb.Q Chicken is having difficulty collecting payments, which could impact its cash flow. However, it could also mean that Bb.Q Chicken is growing and extending more credit to its customers. The allowance for doubtful accounts shows that Bb.Q Chicken is proactively accounting for potential uncollectible amounts, which is a sign of prudent financial management.
It is important to note that these figures are as of a specific date and can change over time. A prospective franchisee should review the entire financial statement and consider other factors, such as the company's sales trends, collection policies, and overall economic conditions, to get a comprehensive understanding of Bb.Q Chicken's financial position. Additionally, it is advisable to consult with a financial advisor to interpret these figures in the context of the franchise opportunity.