What was the depreciation and amortization expense for Browns Chicken in 2022?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
$ 92,955 | 11.77 | | BROWN'S CHICKEN LLC | | | | |
BROWN'S CHIKEN, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net Earnings | $ | 92,304 | $ 139,135 |
| Adjustments to Reconcile Net Earnings to Net | |||
| Cash Flows Provided (Used) By Operating Activities: | |||
| Non-Cash Items | |||
| Allowance for Bad Debts | - | - | |
| Depreciation and Amortization | 11,713 | 26,333 | |
| Loss on Disposal of Fixed Assets | - | - | |
| (Increase) Decrease in | |||
| Accounts Receivable | (2,690) | 12,661 | |
| Uniform & Equipment Inventories | (595) | (2,018) | |
| Prepaid Expenses | (4,798) | (834) | |
| Increase (Decrease) in | |||
| Accounts Payable | 7,171 | (47,999) | |
| Accrued Payroll | 69 | 171 | |
| Accrued Expenses | - | (49,622) | |
| Deferred Revenue | - | - | |
| Total Adjustments | 10,870 | (61,308) | |
| Net Cash Provided (Used) By Operating Activities | 103,174 | 77,827 | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Proceeds From the Disposal of Other Assets | - | - | |
| Payments Received on Loans to Franchisees | - | - | |
| Purchase of Property and Equpment | (10,664) | (34,933) | |
| Due From Related Party | - | - | |
| Net Cash Provided (Used) By Investing Activities | (10,664) | (34,933) | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Payments on Notes Payable | (4,446) | (5,676) | |
| Distributions to Members | (48,000) | (78,000) | |
| Net Cash (Used) By Financing Activities | (52,446) | (83,676) | |
| Net Incre |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the depreciation and amortization expense for 2022 was $26,333. This figure is part of the adjustments used to reconcile net earnings to net cash flows provided by operating activities.
Depreciation and amortization are non-cash expenses that reflect the reduction in value of Browns Chicken's assets over time. Depreciation applies to tangible assets like equipment and buildings, while amortization applies to intangible assets like patents or trademarks. These expenses are deducted from revenue to calculate net income, but they don't involve an actual outflow of cash.
For a prospective Browns Chicken franchisee, understanding depreciation and amortization is important for assessing the company's financial health and profitability. While these expenses don't directly impact cash flow, they do affect net income and can influence decisions about capital investments and asset management. A significant change in depreciation and amortization from year to year could signal changes in Browns Chicken's asset base or accounting practices, warranting further investigation.