What accounts receivable - VIE (net of allowance for doubtful accounts) did Browns Chicken have in 2023?
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 accounts receivable - VIE (net of allowance for doubtful accounts) was $24,810 in 2023. In 2024, the accounts receivable - VIE (net of allowance for doubtful accounts) was $14,423.
Accounts receivable represents money owed to Browns Chicken by its customers or other parties. The "VIE" designation likely refers to a Variable Interest Entity, which is a legal structure where Browns Chicken has a controlling financial interest but not necessarily a majority ownership. The "net of allowance for doubtful accounts" means that Browns Chicken has already subtracted an estimate of the amount of accounts receivable that they do not expect to collect.
For a prospective franchisee, this figure provides insight into the financial management and potential credit risks associated with Browns Chicken's operations. A significant change in this figure from year to year could indicate changes in sales, collection practices, or the financial health of Browns Chicken's customer base. Franchisees may want to inquire about the typical credit terms extended to customers and the procedures for managing and collecting accounts receivable.