What was the royalty payable for Bb.Q Chicken as of December 31, 2022?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
,433,436 |
NOTE 7 – CAPITAL
The Company is authorized to issue 5,000,000 common shares with no par value and 4,250,000 common shares are issued and outstanding as of December 31, 2023.
NOTE 8 – RELATED PARTY TRANSACTIONS
The Company engages in regular purchases of products from the Parent Company and remunerated it with royalties in accordance with the terms outlined in the contract.
- a. Total purchases, including food items and related supplies, from the Parent Company is $5,430,056 and $3,706,669 for the years ended December 31, 2023 and 2022, respectively.
- b. As of December 31, 2023, the Company has account payable to the Parent Company of $7,288,694, and loan payable of $2,000,000 to
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, as of December 31, 2023, the company had an account payable to the Parent Company of $7,288,694, and a loan payable of $2,000,000 to the Parent Company with an annual interest rate of 4.6%.
Total royalty expenses to the Parent Company were $3,351,968 for the year ended December 31, 2023, and $2,393,571 for the year ended December 31, 2022. This indicates the amount of royalties Bb.Q Chicken owed to its parent company for those years.
This information is crucial for prospective franchisees as it provides insight into the financial relationship between Bb.Q Chicken and its parent company, as well as the royalty obligations that Bb.Q Chicken franchisees indirectly contribute to through their own royalty payments. Understanding these related-party transactions can help franchisees assess the financial stability and transparency of the franchise system.
It's important to note that these figures represent the total royalty expenses of the company and not necessarily the specific royalty rate or structure that individual franchisees pay. Franchisees should refer to other sections of the FDD, specifically Item 6, to understand the exact royalty fees they will be responsible for.