What was the increase/decrease in accounts receivable 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 |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the increase/decrease in accounts receivable in 2024 was a decrease of $2,108,010, compared to a decrease of $2,266,137 in 2023. This data is derived from the cash flow statement, specifically within the cash flows from operating activities section.
For a prospective Bb.Q Chicken franchisee, this signifies the changes in the money owed to the company by its customers or franchisees. A negative value indicates that Bb.Q Chicken collected more in accounts receivable than it accrued during the year. The decrease in accounts receivable from 2023 to 2024 could be due to more efficient collection methods, changes in credit terms offered to franchisees, or a decrease in sales on credit.
It's important to note that accounts receivable management is crucial for maintaining healthy cash flow. Franchisees should inquire about Bb.Q Chicken's policies on credit terms, collection processes, and any potential risks associated with managing accounts receivable. Understanding these factors can help franchisees better manage their own finances and assess the overall financial health of the Bb.Q Chicken franchise system.