What was the balance of non-controlling interest at the end of 2023 for Browns Chicken?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
art of these financial statements)
BROWN'S CHICKEN, LLC CONSOLIDATED STATEMENTS OF FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 CHANGES IN MEMBERS' EQUITY
| 2024 | 2023 | |
|---|---|---|
| MEMBERS' EQUITY: | ||
| BALANCE, BEGINNING OF YEAR | 533,296 $ | $ 512,892 |
| Net Earnings for the Year (Page 6) | 55,059 | 68,404 |
| Distributions to Members | (128,000) | (48,000) |
| BALANCE, END OF YEAR | 460,355 $ | $ 533,296 |
| NON-CONTROLLING INTEREST: | ||
| BAL |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the balance of non-controlling interest at the end of 2023 was $87,136. The balance is calculated from a beginning balance of $63,236 and net earnings of $23,900.
Non-controlling interest typically arises when a company owns less than 100% of a subsidiary. In Browns Chicken's case, this likely relates to their consolidated financial statements, which include the accounts of both Browns Chicken, LLC and Browns Chicken, LLC – Series A (Advertising Fund). The non-controlling interest represents the portion of equity in the consolidated entity not attributable to Browns Chicken, LLC.
For a prospective franchisee, understanding the non-controlling interest is less critical than understanding the overall financial health and profitability of Browns Chicken. However, it does provide insight into the complexity of Browns Chicken's corporate structure and how its financials are consolidated. Franchisees may want to inquire about the nature of the non-controlling interest and how it might affect the franchisor's decision-making or financial stability.