What was the end of year balance for the non-controlling interest of Browns Chicken in 2022?
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 balance for the non-controlling interest at the end of 2022 was $63,236. The table within Item 21 of the FDD provides a breakdown of the changes in members' equity and non-controlling interest for both 2023 and 2022.
The non-controlling interest represents the portion of equity in a subsidiary not attributable to the parent company, Browns Chicken. The beginning balance for the non-controlling interest in 2022 was $17,056, which increased by $46,180 due to net earnings for the year. This resulted in the end-of-year balance of $63,236.
Prospective franchisees should understand how non-controlling interests and their associated earnings can impact the overall financial picture of Browns Chicken. While the non-controlling interest does not directly affect the franchisee's operations, it is an indicator of the financial structure and potential obligations of the franchisor. Reviewing these figures over several years can provide insights into the stability and growth of the company's equity and its relationship with any subsidiaries or related entities.