What cash - VIE did Browns Chicken have in 2024?
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) for 2024 was $20,532. This figure represents the amount of cash specifically held within entities that Browns Chicken has a controlling financial interest in, but does not own outright.
Understanding the cash position, especially within VIEs, is crucial for prospective franchisees. It provides insight into the financial health and liquidity of Browns Chicken and its related entities. The cash - VIE balance can fluctuate due to various factors, including revenue generation, expenses, and investments made within those entities.
It is important to note that the FDD also lists the cash - VIE for the previous year, 2023, which was $65,330. The significant decrease in cash - VIE from 2023 to 2024 could indicate changes in the financial management or performance of these entities. A potential franchisee should inquire about the reasons for this change to fully understand the financial dynamics of Browns Chicken.
Prospective franchisees should carefully review the financial statements and consider consulting with a financial advisor to assess the implications of Browns Chicken's cash position and the role of VIEs in its overall financial structure. Understanding these details will help in making an informed decision about investing in a Browns Chicken franchise.