What was the increase/decrease in royalty payable for Bb.Q Chicken in 2022?
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 | - | |
| Increase/Decrease in deferred tax asset | (97,335) | (132,543) | |
| Increase/Decrease in accounts payable | 1,496,963 | 2,442,936 | |
| Increase/Decrease in accrued expenses | 9,721 | (95,548) | |
| Increase/Decrease in taxes payable | 14,290 | 32,350 | |
| Increase/Decrease in royalty payable | (1,593,686) | 428,569 | |
| Increase/Decrease in interest payable | 92,000 | 92,000 | |
| Increase/Decrease in other current liabilities | (33,994) | 89,582 | |
| Increase/Decrease in unearned revenue | (134,250) | 166,250 | |
| Net cash provided by operating activities | 1,656,348 | 625,695 |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, in 2022, there was an increase in royalty payable of $428,569. This figure is part of the cash flow from operating activities reported in the financial statements.
For a prospective Bb.Q Chicken franchisee, this indicates the change in the amount of royalties the company owed but had not yet paid out during that year. An increase in royalty payable could suggest that Bb.Q Chicken's franchisees experienced higher sales, leading to higher royalty obligations, or that there was a delay in royalty payments.
It is important to note that this is just one line item in the overall financial statements and should be considered in the context of the company's complete financial performance. Franchisees should review the entire financial statement and consult with a financial advisor to understand the implications of this increase in royalty payable for the financial health and stability of Bb.Q Chicken.