What was the total amount of accounts payable for Bb.Q Chicken in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 4,581,550 |
| TOTAL ASSETS | $ 27,803,633 | $ 17,774,509 |
Consolidated Balance Sheets December 31, 2023 and 2022
| LIABILITIES & STOCKHOLDER'S EQUITY | 2023 | (restated) 2022 |
|---|---|---|
| CURRENT LIABILITIES | ||
| Accounts payable (Note 8) | $ 7,925,688 | $ 6,428,725 |
| Accrued expenses | 576,960 | 567,239 |
| Taxes payable | 46,640 | 32,350 |
| Royalty payable (Note 8) | 1,721,968 | 3,315,654 |
| Interest payable | 190,248 | 98,248 |
| Bank loan -short-term (Note 6) | 64,505 | 55,728 |
| Unearned revenue | 103,250 | 237,500 |
| Lease liabilities - |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the total accounts payable for 2023 was $7,925,688. This figure represents the company's short-term liabilities to its suppliers and other creditors. It is important to note that the 2022 accounts payable was $6,428,725, indicating an increase in this liability from 2022 to 2023.
Accounts payable is a crucial metric for prospective franchisees to consider, as it reflects the company's financial obligations and its ability to manage its short-term debts. A high accounts payable balance could indicate that Bb.Q Chicken is relying heavily on credit to finance its operations, which may pose a risk if the company experiences financial difficulties. Conversely, a low accounts payable balance could suggest that the company is effectively managing its cash flow and maintaining strong relationships with its suppliers.
It is also worth noting that the accounts payable figure is part of the total current liabilities, which amounted to $11,487,603 in 2023. This broader category includes other short-term obligations such as accrued expenses, taxes payable, royalty payable, and unearned revenue. Analyzing the composition of current liabilities can provide a more comprehensive understanding of Bb.Q Chicken's short-term financial health.
Prospective franchisees should carefully review Bb.Q Chicken's financial statements and consult with a financial advisor to assess the implications of the accounts payable balance and other liabilities. Understanding the company's financial obligations is essential for making an informed decision about investing in a franchise.