How much did Browns Chicken distribute to members in 2023?
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 company distributed $48,000 to its members in 2023. This is a decrease from the $78,000 distributed in the previous year, 2022. These distributions are part of the changes in members' equity, which also include net earnings for the year and the beginning and ending balances of the members' equity.
For a prospective franchisee, understanding these distributions is important because it provides insight into how Browns Chicken manages its finances and shares profits with its members. A decrease in distributions could be due to various factors, such as lower net earnings or increased investments in the business. It is important to note that these distributions are separate from any potential earnings a franchisee might receive from their own Browns Chicken restaurant.
Reviewing the consolidated statements of changes in members' equity over several years can help a potential franchisee identify trends and assess the financial stability of Browns Chicken. It's also worth comparing these figures to those of other similar franchise systems to gauge how Browns Chicken's financial practices align with industry norms. Further investigation into the reasons behind fluctuations in distributions can provide a more comprehensive understanding of the company's financial health.