What was the balance of the non-controlling interest at the end of 2024 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 the non-controlling interest at the end of 2024 was $20,339. This figure represents the portion of equity in a subsidiary not attributable to Browns Chicken, the parent company. It reflects the financial stake in Browns Chicken LLC held by minority owners or other entities that do not have a controlling interest.
The non-controlling interest is impacted by the net earnings or losses attributable to it and any distributions made. In 2024, the non-controlling interest saw a net loss of $66,797. The beginning balance of the non-controlling interest for 2024 was $87,136, which, after accounting for the net loss, resulted in the ending balance of $20,339.
For a prospective Browns Chicken franchisee, understanding the non-controlling interest is crucial for assessing the overall financial health and structure of the company. While franchisees may not directly interact with this aspect of the business, it provides insight into the ownership and financial obligations of Browns Chicken. A significant change in the non-controlling interest balance from year to year could signal shifts in the company's financial strategy or ownership structure, which could indirectly affect franchisees.