Does the Browns Chicken financial statement include notes to the financial statements?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
To Management Brown's Chicken, LLC Villa Park, Illinois
Opinion
We have audited the accompanying financial statements of Brown's Chicken, LLC which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in members' equity, and cash flows for the years then ended and the related notes to the financial statements.
(The accompanying notes are an integral part of these financial statements)
NOTE 1 - DESCRIPTION OF BUSINESS
Brown's Chicken, LLC, located in Villa Park, Illinois, was organized in October 2010, under the laws of the State of Illinois. The Company is a franchisor of the Brown's Chicken & Pasta chain of restaurants located in Illinois and Indiana. The Company also manages an advertising fund for the benefit of the franchise stores, which provides advertising for the Brown's Chicken & Pasta chain of restaurants.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 7 - INCOME TAXES
NOTE 8 - SUBSEQUENT EVENTS
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the financial statements include related notes. The independent auditor's report states that the audit includes the consolidated balance sheets, statements of operations, changes in members' equity, and cash flows, along with the related notes to the financial statements. These notes are an integral part of the financial statements.
The inclusion of notes is a standard accounting practice. These notes provide additional details and explanations about the figures presented in the core financial statements, offering a more complete picture of Browns Chicken's financial position and performance. For instance, Note 1 describes the business, while Note 2 summarizes significant accounting policies, such as the use of estimates and principles of consolidation.
Furthermore, the notes also cover aspects like income taxes and subsequent events, offering insights into Browns Chicken's tax positions and any significant events that occurred after the balance sheet date. For example, Note 7 discusses income taxes, and Note 8 addresses subsequent events evaluated through April 30, 2025. These notes are crucial for a comprehensive understanding of the financial statements and any potential risks or opportunities for Browns Chicken.