What was the total amount of lease liabilities (long-term) 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 - short-term (Note 9) | 795,007 | 993,267 |
| Other current liabilities | 63,337 | 97,331 |
| Total Current Liabilities | 11,487,603 | 11,826,042 |
| OTHER LIABILITIES | ||
| Non-current due to parent | 5,174,292 | - |
| Bank loan (Note 6) | 502,320 | 570,792 |
| Lease liabilities - long-term (Note 9) | 7,936,549 | 2,782,694 |
| Loan payable to parent (Note 6) | 2,000,000 | 2,000,000 |
| Total Liabilities | 27,100,764 | 17,179,528 |
| STOCKHOLDER'S EQUITY | ||
| Common stock, no par value; |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the company's total lease liabilities (long-term) for 2023 was $7,936,549. This figure represents the long-term portion of the company's obligations under various lease agreements, as detailed in Note 9 of the financial statements. These lease liabilities stem from agreements for office space, restaurant sites, vehicles, and equipment.
For a prospective Bb.Q Chicken franchisee, understanding the franchisor's lease liabilities can provide insight into the company's financial commitments and overall financial health. It is important to note that these liabilities do not represent the individual franchisee's lease obligations for their own restaurant locations. Instead, they reflect the corporate entity's financial obligations for leases it has entered into.
The FDD also indicates that the company's lease liabilities (long-term) significantly increased from 2022 to 2023, rising from $2,782,694 to $7,936,549. This substantial increase could be due to the company entering into new long-term leases or changes in accounting standards affecting lease liability recognition. Franchisees should consider this trend and inquire about the reasons behind the increase to better assess the company's financial strategy and stability.
It is also important to note that Bb.Q Chicken does not have finance leases as of December 31, 2023. All leases are operating leases and are included in operating lease right-of-use assets, other current liabilities, and operating lease liabilities in the balance sheets.