What was the previously reported balance at December 31, 2022, for Bb.Q Chicken?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
nding (Note 7) | | | | Additional paid in capital | 7,454 | 7,454 | | Deficit | (3,554,585) | (3,662,473) | | Accumulated other comprehensive income | - | - | As of result, the following adjustment was made:
| Balace at December as previously reported 31, 2022, | $ (3,055,019) |
|---|---|
| Prior | |
| period | |
| adjustment | |
| for: | |
| Decrease | (607,454) |
| in | |
| net income | |
| contribution | |
| to noncontrolling | |
| interest | |
| Prior | (607,454) |
| period | |
| adjustment | |
| - December | |
| 31, | |
| 2020 | |
| Balance | $ (3,662,473) |
| at December | |
| as restated | |
| 31, | |
| 2022, | |
| for | 652,615 |
| 2022, | |
| as previously |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the balance at December 31, 2022, as previously reported, was a negative $3,055,019. This figure was later adjusted due to a decrease in net income contribution to noncontrolling interest, resulting in a prior period adjustment of ($607,454). Consequently, the balance at December 31, 2022, was restated to a negative $3,662,473.
Additionally, the net income for 2022, as previously reported, was $652,615. After a prior period adjustment of ($607,454) for December 31, 2022, the net income for 2022 was restated to $45,161.
These figures reflect changes in Bb.Q Chicken's financial reporting and should be carefully considered by potential franchisees. Understanding the reasons behind these adjustments is crucial for assessing the financial health and stability of the company. Prospective franchisees should seek clarification from Bb.Q Chicken regarding these adjustments and their potential impact on future financial performance.