What was the restated net income for 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 restated net income for 2022 was $45,161. This figure reflects adjustments made to the initially reported net income to provide a more accurate financial representation. The adjustments include a prior period adjustment of $(607,454). The previously reported net income for 2022 was $652,615.
Understanding the restated net income is crucial for prospective franchisees as it provides a clearer picture of Bb.Q Chicken's actual profitability during that period. Franchisees can use this information to assess the financial health and stability of the company. It's important to note that these figures are based on Bb.Q Chicken's specific accounting practices and may not be directly comparable to other franchises.
It is also important for potential franchisees to investigate the reasons behind the prior period adjustment. Significant adjustments can sometimes indicate accounting errors or other financial issues that warrant further scrutiny. While a restatement doesn't automatically signal a problem, understanding the nature and impact of these adjustments is a key part of due diligence when evaluating a franchise opportunity.