How much did Bb.Q Chicken spend on the acquisition of new fixed assets 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 | - | |
| 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 | |
| Cash flows from investing activities: | |||
| Acquisition of new fixed assets | (611,641) | (1,169,150) | |
| Acquisition of intangible asset | (9,350) | (38,251) | |
| Increase/Decrease in investment | - | (1,600,000) | |
| Increase/Decrease in loans to franchises | (230,916) | (185,927) | |
| Increase/Decrease in loans to others | (11,103) | 29,483 | |
| Increase/Decrease in security deposits | (10,708) | (36,015) | |
| Increase/Decrease in right of assets | (5,128,467) | (3,642,797) | |
| Net cash used in investing activities | (6,002,185) | (6,642,657) | |
| Cash flows from financing activities: | |||
| Bank loan | (59,695) | 473,269 | |
| Increase/Decrease in lease liabilities | 4,955,595 | 3,775,961 | |
| Net cash provided by financing activities | 4,895,900 | 4,249,230 | |
| Net increase(decrease) in cash | 550,063 | (1,767,732) | |
| Cash, beginning of year | 1,449,277 | 3,217,009 | |
| Cash, end of year | $ 1,999,340 | $ 1,449,277 | |
| Supplemental cash flow disclosures : | |||
| - Interest paid | $ 51,979 | $ 12,092 | |
| - Income taxes paid | $ 74,082 | $ 20,694 |
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 spent $611,641 on the acquisition of new fixed assets in 2023. This figure is part of the cash flow statement, specifically under cash flows from investing activities.
For a prospective franchisee, this indicates the level of investment Bb.Q Chicken itself is making in its own infrastructure and resources. It is important to note that this is the franchisor's expenditure and not the investment required from a new franchisee to set up their own location. Fixed assets typically include items like property, equipment, and vehicles that are used in the business operations and are expected to provide benefit for more than one year.
It's also useful to compare this figure to the previous year. In 2022, Bb.Q Chicken spent $1,169,150 on the acquisition of new fixed assets. The decrease in spending from 2022 to 2023 could reflect a change in investment strategy, completion of major projects, or other factors. A potential franchisee might want to inquire about the nature of these fixed asset acquisitions to understand the company's growth and investment patterns.