What accounts receivable - VIE (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 accounts receivable - VIE (net of allowance for doubtful accounts) was $14,423 in 2024. In 2023, the accounts receivable - VIE (net of allowance for doubtful accounts) was $24,810.
Accounts receivable represents money owed to Browns Chicken by its customers or other parties. The "VIE" designation likely refers to Variable Interest Entities, which are entities where Browns Chicken has a controlling financial interest but not necessarily direct 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 health and accounting practices of Browns Chicken. A higher accounts receivable balance might indicate more sales on credit, while the allowance for doubtful accounts reflects the company's expectations regarding potential uncollectible amounts. Significant changes in these figures from year to year could signal shifts in business practices or the financial stability of Browns Chicken's customer base.
It is important to note that these figures reflect Browns Chicken's corporate financial performance and may not directly translate to the performance of an individual franchise location. However, understanding the franchisor's overall financial position is a crucial part of evaluating the franchise opportunity.