What cash - VIE did Browns Chicken have in 2023?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| CURRENT ASSETS: | ||
|---|---|---|
| Cash and Cash Equivalents | $ 37,437 | $ 78,676 |
| Cash - VIE | 20,532 | 65,330 |
| Accounts Receivable (Net of Allowance for Doubtful | ||
| Accounts of $0 in 2024 and $7,999 in 2023) | 21,293 | 43,420 |
| Accounts Receivable - VIE (Net of Allowance for | ||
| Doubtful Accounts of $0 in 2024 and $0 in 2023) | 14,423 | 24,810 |
| Uniform & Equipment Inventory | 4,625 | 4,968 |
| Prepaid Expenses | 4,350 | 6,750 |
| Total Current Assets | 102,660 | 223,954 |
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company's cash - VIE (Variable Interest Entity) in 2023 was $65,330. This figure represents the amount of cash held by entities in which Browns Chicken has a controlling financial interest but not necessarily through direct ownership.
For a prospective franchisee, understanding the cash position of VIEs can be important as it reflects the financial health and stability of related entities that could impact the overall Browns Chicken system. A higher cash balance in VIEs might indicate stronger financial management and potentially more resources available for supporting the franchise network.
It's worth noting that the FDD also provides the cash - VIE figure for 2024, which was $20,532. The significant decrease from 2023 to 2024 could be a point of inquiry for potential franchisees, as it may reflect changes in the financial performance or structure of the VIEs. Further investigation into the reasons behind this change would be prudent to assess any potential risks or opportunities associated with investing in a Browns Chicken franchise.