What is the net value of Bb.Q Chicken's accounts receivable for the parent company?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Level 3 – Unobservable inputs reflect management's assumptions. For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivables and accounts payable; the fair values approximate carrying values due to their short-term maturities. The Company maintains policies and procedures to value instruments using the best and most relevant data available. With regard to Level 3 valuations (including instruments valued by third parties), the Company performs a variety of procedures to assess the reasonableness of the valuation.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
The 2025 Bb.Q Chicken FDD includes information about the fair value of accounts receivable. According to Note 13, for certain financial instruments, including accounts receivable, the fair values approximate carrying values due to their short-term maturities. This means the net value is close to the amount the company expects to collect. The document also states that the company maintains policies and procedures to value instruments using the best and most relevant data available and performs procedures to assess the reasonableness of the valuation. However, the specific net value of Bb.Q Chicken's accounts receivable for the parent company is not disclosed in this excerpt. A prospective franchisee should ask the franchisor for this information.