By how much did Browns Chicken's accounts receivable increase/decrease in 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Caboor & Company
Catalano, Caboor & Co. Lombard, IL
April 30, 2025
BROWN'S CHICKEN, LLC CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023
ASSETS
| 2024 | 2023 | |
|---|---|---|
| CURRENT ASSETS: | ||
| Cash and Cash Equivalents | $ 37,437 | $ 78,676 |
| Cash - VIE | 20,532 | 65,330 |
| Accounts Receivable (Net of Allowance for Doubtful | ||
| Accounts of $0 in 2024 and $7,999 in 2023) | 21,293 | 43,420 |
| Accounts Receivable - VIE (Net of Allowance for | ||
| Doubtful Accounts of $0 in 2024 and $0 in 2023) | 14,423 | 24,810 |
| Uniform & Equipment Inventory | 4,625 | 4,968 |
| Prepaid Expenses | 4,350 | 6,750 |
| Total Current Assets | 102,660 | 223,954 |
| PROPERTY AND EQUIPMENT: | ||
| Equipment | 44,834 | 44,834 |
| Vehicles | 121,465_ | 121,465 |
| Subtotal | 166,299 | 166,299 |
| Less Accumulated Depreciation | (154,092) | (143,072) |
| Net, Property and Equipment | 12,207 | 23,227 |
| OTHER ASSETS: |
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 consolidated balance sheets show a decrease in accounts receivable between 2023 and 2024. Specifically, accounts receivable (net of allowance for doubtful accounts) decreased from $43,420 in 2023 to $21,293 in 2024. Similarly, accounts receivable from VIE (variable interest entity), also net of allowance for doubtful accounts, decreased from $24,810 in 2023 to $14,423 in 2024.
In total, Browns Chicken's accounts receivable decreased by $22,127 ($43,420 - $21,293) and the accounts receivable from VIE decreased by $10,387 ($24,810 - $14,423) from 2023 to 2024. This represents a significant decrease in the amounts owed to Browns Chicken by its customers and its VIE.
A prospective franchisee should further investigate the reasons behind this decrease. It could be due to more efficient collection practices, a change in sales terms, or potentially a decrease in sales. Understanding the reasons for these changes is important for assessing the financial health and operational efficiency of Browns Chicken.