What was the beginning balance of the non-controlling interest for Browns Chicken in 2023?
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, 2023 AND 2022 CHANGES IN MEMBERS' EQUITY
| 2023 | 2022 | |
|---|---|---|
| MEMBERS' EQUITY: | $ 512,892 | $ 497,937 |
| BALANCE, BEGINNING OF YEAR | ||
| Net Earnings for the Year (Page 6) | 68,404 | 92,955 |
| Distributions to Members | (48,000) | (78,000) |
| BALANCE, END OF YEAR | $ 533,296 | $ 512,892 |
| NON-CONTROLLING INTEREST: |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the beginning balance of the non-controlling interest in 2023 was $63,236. This figure represents the portion of equity in a subsidiary that is not attributable to the parent company, Browns Chicken. It reflects the ownership stake held by minority shareholders in a subsidiary consolidated within Browns Chicken's financial statements.
The non-controlling interest increased during 2023 due to net earnings of $23,900, resulting in an end-of-year balance of $87,136. This indicates that the subsidiary in which the non-controlling interest exists was profitable, thereby increasing the equity attributable to the minority shareholders. For a prospective franchisee, understanding these figures provides insight into the financial structure and performance of Browns Chicken and its consolidated entities.
Changes in non-controlling interest can impact the overall financial health and reporting of Browns Chicken. A significant increase in non-controlling interest might suggest growing profitability in subsidiaries, while a decrease could indicate losses or changes in ownership structure. Franchisees should be aware of these factors as they reflect the broader financial dynamics within the Browns Chicken organization.