Does Browns Chicken make any representations about the past financial performance of company-owned outlets?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITORS' REPORT
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.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Brown's Chicken, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Brown's Chicken, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, there is no explicit representation regarding the past financial performance of company-owned Browns Chicken outlets within the provided Item 21 excerpts. Item 21 includes the independent auditor's report and consolidated financial statements for Brown's Chicken, LLC for the years 2023 and 2024. These statements cover the consolidated balance sheets, statements of operations, changes in member's equity, and cash flows. Notes to the financial statements discuss accounting policies, income taxes, and subsequent events. However, the franchisor does not make any explicit claims or disclosures about the historical financial results of company-owned stores.
Without specific data on the financial performance of company-owned Browns Chicken locations, prospective franchisees lack a complete picture of potential earnings and operational benchmarks. The provided financial statements offer an overview of the company's overall financial health but do not break down performance at the store level. This absence of store-level financial data makes it difficult for potential franchisees to assess the viability and profitability of individual franchise locations based on the performance of company-owned stores.
Therefore, it is crucial for potential Browns Chicken franchisees to directly engage with the franchisor to obtain detailed information on the financial performance of company-owned stores. Specifically, prospective franchisees should inquire about the revenues, expenses, and profitability of company-owned locations over the past several years. Understanding these figures will allow franchisees to develop realistic financial projections and assess the potential return on investment for their own franchise.