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What was the accumulated depreciation for Browns Chicken's vehicles as of December 31, 2023?

Q: What was the accumulated depreciation for Browns Chicken's vehicles as of December 31, 2023?

as of December 31, 2023 and 2022, respectively. #### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued #### PROPERTY, EQUIPMENT AND DEPRECIATION Property and equipment are stated at cost. For tax return purposes, property and equipment is depreciated by use of the modified accelerated cost recovery system (MACRS). The MACRS method of depreciation allows for the cost of eligible property to be recovered over a 3, 5, or 7-year period depending on the type of property. For financial statement purposes, property and equipment is depreciated using the straightline method Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

as of December 31, 2023 and 2022, respectively.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

PROPERTY, EQUIPMENT AND DEPRECIATION

Property and equipment are stated at cost. For tax return purposes, property and equipment is depreciated by use of the modified accelerated cost recovery system (MACRS). The MACRS method of depreciation allows for the cost of eligible property to be recovered over a 3, 5, or 7-year period depending on the type of property.

For financial statement purposes, property and equipment is depreciated using the straightline method

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)

What This Means (2025 FDD)

According to Browns Chicken's 2025 Franchise Disclosure Document, the financial statements provide details on property, equipment, and depreciation. For financial statement purposes, Browns Chicken depreciates property and equipment using the straight-line method over 5 to 10 years. Depreciation expense for book purposes was $11,712 for the year ended December 31, 2023.

However, the exact accumulated depreciation for vehicles specifically is not detailed in the provided excerpts. The excerpts mention that property and equipment are stated at cost and depreciated using the modified accelerated cost recovery system (MACRS) for tax purposes, allowing the cost of eligible property to be recovered over a 3, 5, or 7-year period depending on the type of property.

To obtain the specific accumulated depreciation for Browns Chicken's vehicles as of December 31, 2023, a prospective franchisee should review the complete audited financial statements included as Exhibit A in Item 21 of the FDD. If the information is not explicitly stated, they should ask Browns Chicken's management for this figure during their due diligence process. Understanding the depreciation schedule for vehicles is important for projecting the future capital expenditure needs of the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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