What accounts receivable (net of allowance for doubtful accounts) did Browns Chicken have in 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| CURRENT ASSETS: | ||
|---|---|---|
| Cash and Cash Equivalents | $ 37,437 | $ 78,676 |
| Cash - VIE | 20,532 | 65,330 |
| Accounts Receivable (Net of Allowance for Doubtful | ||
| Accounts of $0 in 2024 and $7,999 in 2023) | 21,293 | 43,420 |
| Accounts Receivable - VIE (Net of Allowance for | ||
| Doubtful Accounts of $0 in 2024 and $0 in 2023) | 14,423 | 24,810 |
| Uniform & Equipment Inventory | 4,625 | 4,968 |
| Prepaid Expenses | 4,350 | 6,750 |
| Total Current Assets | 102,660 | 223,954 |
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company's accounts receivable (net of allowance for doubtful accounts) was $21,293 in 2024. This figure excludes accounts receivable from VIE (Variable Interest Entities), which had a net value of $14,423 in 2024. The allowance for doubtful accounts was $0 in 2024 for both standard accounts receivable and VIE accounts receivable.
For a prospective franchisee, understanding the accounts receivable is crucial as it reflects the money owed to Browns Chicken by its customers or other entities. The 'net of allowance for doubtful accounts' indicates that Browns Chicken has already accounted for potential uncollectible amounts, providing a more realistic view of expected revenue. Monitoring these figures can help a franchisee assess the financial health and stability of Browns Chicken.
The distinction between standard accounts receivable and those from VIEs suggests that Browns Chicken may have complex financial relationships with other entities. Franchisees should seek clarification on the nature and implications of these VIEs to fully understand the company's financial structure. Furthermore, the fact that the allowance for doubtful accounts was $0 in 2024 might indicate a conservative accounting approach or a high rate of successful collections.
Overall, the accounts receivable figures provide a snapshot of Browns Chicken's short-term financial position. Potential franchisees should analyze these numbers in conjunction with other financial data in the FDD to gain a comprehensive understanding of the company's financial performance and risk profile. It is advisable to consult with a financial advisor to interpret these figures in the context of the broader franchise opportunity.