What was the amount of Browns Chicken's accounts receivable (net of allowance for doubtful accounts) in 2022?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
lano,Caboor & Co.*
Catalano, Caboor & Co. Lombard, IL
March 31, 2024
BROWN'S CHICKEN, LLC CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022
ASSETS
| 2023 | 2022 | |||
|---|---|---|---|---|
| CURRENT ASSETS: | ||||
| Cash and Cash Equivalents | $ | 78,676 | $ | 60,971 |
| Cash - VIE | 65,330 | 42,971 | ||
| Accounts Receivable (Net of Allowance for Doubtful | ||||
| Accounts of $7,999 in 2023 and $8,588 in 2022) | 43,420 | 45,891 | ||
| Accounts Receivable - VIE (Net of Allowance for | ||||
| Doubtful Accounts of $0 in 2023 and $0 in 2022) | 24,810 | 19,649 | ||
| Uniform & Equipment Inventory | 4,968 | 4,373 | ||
| Prepaid Expenses |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
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 $45,891 in 2022. Additionally, the accounts receivable for VIE (Net of Allowance for Doubtful Accounts of $0 in 2023 and $0 in 2022) was $19,649 in 2022.
Accounts receivable represents the money owed to Browns Chicken by its customers or franchisees for goods or services already provided. The allowance for doubtful accounts is an estimate of the amount of accounts receivable that Browns Chicken may not be able to collect. Subtracting this allowance provides a more realistic view of the actual value of accounts receivable.
For a prospective franchisee, understanding the accounts receivable and the allowance for doubtful accounts can provide insights into the financial health and stability of Browns Chicken. It can also help in assessing the effectiveness of the company's credit and collection policies. Reviewing these figures over several years, if available, can reveal trends and potential risks related to the company's ability to manage its receivables.