What was the change in accounts receivable for Browns Chicken in 2023?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
lano,Caboor & Co.*
Catalano, Caboor & Co. Lombard, IL
March 31, 2024
BROWN'S CHICKEN, LLC CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022
ASSETS
| 2023 | 2022 | |||
|---|---|---|---|---|
| CURRENT ASSETS: | ||||
| Cash and Cash Equivalents | $ | 78,676 | $ | 60,971 |
| Cash - VIE | 65,330 | 42,971 | ||
| Accounts Receivable (Net of Allowance for Doubtful | ||||
| Accounts of $7,999 in 2023 and $8,588 in 2022) | 43,420 | 45,891 | ||
| Accounts Receivable - VIE (Net of Allowance for | ||||
| Doubtful Accounts of $0 in 2023 and $0 in 2022) | 24,810 | 19,649 | ||
| Uniform & Equipment Inventory | 4,968 | 4,373 | ||
| Prepaid Expenses | 6,750 | 1,952 | ||
| Total Current Assets | 223,954 | 175,807 | ||
| PROPERTY AND EQUIPMENT: | ||||
| Equipment |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company's accounts receivable, net of allowance for doubtful accounts, changed between 2022 and 2023. In 2023, the accounts receivable was $43,420, with an allowance for doubtful accounts of $7,999. In 2022, the accounts receivable was $45,891, with an allowance for doubtful accounts of $8,588.
Additionally, Browns Chicken also reports accounts receivable for its VIE (Variable Interest Entity). In 2023, the accounts receivable - VIE was $24,810, with no allowance for doubtful accounts. In 2022, the accounts receivable - VIE was $19,649, also with no allowance for doubtful accounts.
Therefore, the accounts receivable for Browns Chicken decreased by $2,471 from 2022 to 2023. The accounts receivable - VIE increased by $5,161 from 2022 to 2023. A prospective franchisee should consider these figures to understand how Browns Chicken manages its receivables and the potential risk of uncollectible accounts.