How many common shares is Bb.Q Chicken authorized to issue?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
82 | | - Conversion of AP, royalty payable, due to parent into equity | | $ 14,231,561 | |#### NOTE 8 – CAPITAL
The Company is authorized to issue 5,000,000 common shares with no par value and 4,250,000 common shares are issued and outstanding as of December 31, 2024.
At the year ended, the Company converted an outstanding balance of $14,231,561 in payables owed to its parent company into equity. This transaction included account payable of $13,296,561 and royalty payable of $935,000. This conversion was executed as a capital restructuring measure to strengthen the Company's financial position. No addition
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the company is authorized to issue 5,000,000 common shares with no par value. As of December 31, 2024, 4,250,000 common shares were issued and outstanding. This indicates that while the company has the capacity to issue up to 5,000,000 shares, not all of them have been distributed to investors or stakeholders. The remaining shares could be used for future capital raising, employee stock options, or other corporate purposes.
Bb.Q Chicken converted $14,231,561 in payables owed to its parent company into equity. This included $13,296,561 of account payable and $935,000 of royalty payable. This conversion was a capital restructuring measure to strengthen the Company's financial position. No additional shares were issued as part of this transaction, and the reclassification was recorded as an increase in equity.
For a prospective franchisee, this information provides insight into the financial structure and capitalization of Bb.Q Chicken. Knowing the number of authorized and outstanding shares can be useful in assessing the company's financial stability and potential for future growth. It also demonstrates how Bb.Q Chicken manages its financial obligations and restructures its capital to maintain a strong financial position.