What was the increase/decrease in prepaid expenses for Bb.Q Chicken in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
AINED DEFICIT - ending | (3,554,585) | (3,662,473) |
Consolidated Statements of Cash Flow December 31, 2023 and 2022
| 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 | (1,570,2 |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, there was an increase in prepaid expenses of $91,641 in 2023. This figure is part of the cash flow statement, specifically within the cash flows from operating activities section. In 2022, the increase in prepaid expenses was $383,504.
Prepaid expenses typically include items like insurance premiums, rent, or advertising costs that Bb.Q Chicken has paid in advance for services or goods to be received in the future. The decrease from $383,504 in 2022 to $91,641 in 2023 indicates that Bb.Q Chicken spent less on prepaid items in 2023 compared to the previous year. This could be due to various factors, such as changes in payment schedules, negotiation of better terms with suppliers, or a reduction in the overall level of prepaid services.
For a prospective franchisee, this information provides insight into how Bb.Q Chicken manages its cash flow and operating expenses. While a decrease in prepaid expenses might seem positive, it's important to understand the underlying reasons. Franchisees may want to inquire about the specific types of prepaid expenses and the company's policies regarding these payments to better assess the financial health and management practices of Bb.Q Chicken.