What was the increase/decrease in due to parent for 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 | - |
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 due to parent was $5,174,292 in 2023. This figure reflects the net change in the amount owed to or from the parent company related to various transactions and financial activities. A positive value, as seen here, indicates an increase in the amount due to the parent company.
For a prospective Bb.Q Chicken franchisee, this number provides insight into the financial relationship between the franchise system and its parent company. It suggests the parent company may have provided financial support, loans, or other resources to the franchise system during that year, increasing the liability 'due to parent'. Understanding these inter-company financial dynamics can help a franchisee assess the financial stability and support structure of the franchise.
It's important to note that this is just one line item in the overall financial statement. A franchisee should review the entire financial statement, including the balance sheet and income statement, to get a comprehensive understanding of the financial health of Bb.Q Chicken. Additionally, comparing this figure to previous years and industry benchmarks can provide further context. A significant increase in 'due to parent' could indicate increased reliance on the parent company for financial support, which may or may not be a cause for concern depending on the specific circumstances.