How much interest did Browns Chicken pay during the year ended December 31, 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Flows, cash equivalents include time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.
| During the Year Ended December 31, 2024, | $ |
|---|---|
| The Company Paid Interest of | 12 |
| During the Year Ended December 31, 2024, | $ |
| The Company Paid Income Taxes of | 0 |
| During the Year |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company paid $12 in interest during the year ended December 31, 2024. This is a significant decrease from the $155 in interest paid during the year ended December 31, 2023.
For a prospective franchisee, this information is useful in understanding the financial obligations of Browns Chicken. The relatively low interest paid in 2024 could indicate that Browns Chicken has been successful in managing its debt or has refinanced to obtain better terms.
However, it is important to note that this figure represents the interest paid by the franchisor, Browns Chicken, LLC, and not necessarily the interest expenses a franchisee might incur. A franchisee's interest expenses will depend on factors such as the amount of capital borrowed, the interest rate on the loans, and the repayment terms. It would be prudent for a prospective franchisee to inquire about the factors that contributed to the decrease in interest paid and to understand Browns Chicken's overall debt management strategy.