How much did Bb.Q Chicken spend on the acquisition of new fixed assets in 2024?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
)
Consolidated Statements of Cash Flow December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net Income (loss) | $ (51,129) | $ 107,888 |
| Adjustment to reconcile net income (loss) to net cash | ||
| used in operating activities: | ||
| Depreciation & amortization | 402,980 | 368,402 |
| Bad debt expenses | 42,846 | 9,370 |
| Provision for inventory reserves | 12,320 | 12,350 |
| Increase/Decrease in accounts receivable | (2,108,010) | (2,266,137) |
| Increase/Decrease in due from parent | (2,016,520) | - |
| Increase/Decrease in inventory | 1,065,214 | (1,582,637) |
| Increase/Decrease in prepaid expenses | (171,458) | 91,641 |
| Increase/Decrease in interest receivable | (11,878) | (12,530) |
| Increase/Decrease in contract asset | (140,000) | - |
| Increase/Decrease in deferred tax asset | 56,705 | (97,335) |
| Increase/Decrease in accounts payable | 1,792,542 | 1,496,963 |
| Increase/Decrease in accrued expenses | 50,353 | 9,721 |
| Increase/Decrease in taxes payable | (9,627) | 14,290 |
| Increase/Decrease in royalty payable | 2,780,651 | (1,593,686) |
| Increase/Decrease in interest payable | 92,252 | 92,000 |
| Increase/Decrease in unearned revenue | (103,250) | (134,250) |
| Increase/Decrease in other current liabilities | 20,965 | (33,994) |
| Increase/Decrease in due to parent | - | 5,174,292 |
| Increase/Decrease in right of assets | 548,639 | (5,128,467) |
| Net cash provided by operating activities | 2,253,594 | (3,472,119) |
| Cash flows from investing activities: | ||
| Acquisition of new fixed assets | (437,360) | (611,641) |
| Acquisition of intangible assets | (173,901) | (9,350) |
| Increase/Decrease in loans to others | (308,836) | (230,916) |
| Increase/Decrease in other receivables | (198,295) | (11,103) |
| Increase/Decrease in security deposits | (274,094) | (10,708) |
| Net cash used in investing activities | (1,392,486) | (873,718) |
| Cash flows from financing activities: | ||
| Bank loan | (64,040) | (59,695) |
| Increase/Decrease in lease liabilities | (405,580) | 4,955,595 |
| Net cash provided by financing activities | (469,620) | 4,895,900 |
| Net increase(decrease) in cash | 391,488 | 550,063 |
| Cash, beginning of year | 1,999,340 | 1,449,277 |
| Cash, end of year | $ 2,390,828 | $ 1,999,340 |
| Supplemental cash flow disclosures : | ||
| - Interest paid | $ 40,024 | $ 51,979 |
| - Income taxes paid | $ 204,283 | $ 74,082 |
| - Conversion of AP, royalty payable, due to parent into equity | $ 14,231,561 | |
| See Acc |
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 $437,360 on the acquisition of new fixed assets in 2024. This figure is part of the cash flows from investing activities, which also include expenses for acquiring intangible assets, loans to others, and security deposits.
For a prospective franchisee, this indicates the level of investment Bb.Q Chicken is making in its own infrastructure and resources. While this is not directly related to the costs a franchisee will incur to open their own location, it does provide insight into the financial management and investment strategies of the franchisor.
It's also worth noting that the acquisition of new fixed assets decreased from $611,641 in 2023 to $437,360 in 2024. This could reflect a change in investment strategy or the completion of major infrastructure projects. A potential franchisee might want to inquire about the nature of these fixed asset acquisitions to understand the franchisor's priorities and future plans.