What was the total value of Bb.Q Chicken's prepaid expenses in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | 2023 | 2022 | |
|---|---|---|---|
| CURRENT ASSETS | |||
| Cash & cash equivalents (Note 2) | $1,999,340 | $ 1,449,277 | |
| Accounts receivable - net (Note 2) | 4,519,578 | 2,262,811 | |
| Inventory - net (Note 2) | 6,786,479 | 5,216,192 | |
| Prepaid expenses (Note 4) | 78,218 | 169,859 | |
| Interest receivable | 19,041 | 6,511 | |
| Loans to others | 325,306 | 314,203 | |
| Right of assets - short-term | 927,000 | 1,014,583 | |
| Total Current Assets | 14,654,962 | 10,433,436 |
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 prepaid expenses for 2023 were $78,218. Prepaid expenses are payments made in advance for goods or services that will be received in the future. These are considered current assets on the balance sheet.
For a prospective Bb.Q Chicken franchisee, understanding the level of prepaid expenses can offer insights into the company's financial management and operational practices. Prepaid expenses can include items such as rent, insurance, or supplies that have been paid for in advance. Monitoring these figures over time can reveal trends in how Bb.Q Chicken manages its cash flow and resources.
The FDD also includes a note clarifying that as of December 31, 2023, the prepaid expenses of $78,218 are recorded as such and will be charged to the appropriate expense accounts when they are incurred. This is a standard accounting practice, but it's helpful to have this confirmation in the financial statements.
In comparison to 2022, Bb.Q Chicken's prepaid expenses decreased from $169,859 to $78,218 in 2023. This decrease could be due to a variety of factors, such as changes in payment schedules with vendors or a reduction in the amount of services prepaid. A potential franchisee may want to inquire about the reasons for this change to better understand the company's financial strategy.