What was the net income (loss) for Bb.Q Chicken in 2024?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 Accompanying Notes to Consolidated Financial Statements | ||
Notes to Consolidated Financial Statements December 31, 2024 and 2023
NOTE 1 – BUSINESS AND ORGANIZATION
BBDOTQ USA, INC. (the "Company") was incorporated under the laws of the State of New Jersey on August 19, 2014. The Company is a majority-owned subsidiary of GENESIS BBQ GLOBAL CO., LTD. (the "Parent Company"), incorporated under the laws of Korea.
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 experienced a net loss of $51,129 in 2024. This figure is part of the cash flow statement, which also details adjustments to reconcile the net loss to net cash used in operating activities. These adjustments include items like depreciation and amortization ($402,980), bad debt expenses ($42,846), and changes in accounts receivable (a decrease of $2,108,010).
The cash flow statement provides a comprehensive view of Bb.Q Chicken's financial activities, categorizing them into operating, investing, and financing activities. In 2024, the company's operating activities provided a net cash flow of $2,253,594, while investing activities used $1,392,486, and financing activities used $469,620. These figures, combined with the beginning cash balance of $1,999,340, resulted in an end-of-year cash balance of $2,390,828.
For a prospective franchisee, understanding these financial statements is crucial. While the net loss might raise concerns, the positive cash flow from operating activities suggests that the core business operations are generating cash. The adjustments listed provide further insight into the non-cash expenses and changes in working capital that affect the company's cash position. It's important to consider these factors when evaluating the overall financial health and stability of Bb.Q Chicken as a franchise opportunity.