What is the net allowance for doubtful accounts receivable for Browns Chicken in 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the net allowance for doubtful accounts receivable is provided in the current assets section. In 2024, the allowance for doubtful accounts is $0. In 2023, the allowance for doubtful accounts was $7,999.
This means that Browns Chicken did not set aside any funds in 2024 to cover potential uncollectible accounts receivable. In contrast, in 2023, they had allocated $7,999 for this purpose.
For a prospective franchisee, this information is relevant in assessing the financial health and risk management practices of Browns Chicken. It's important to understand why there was a change in the allowance for doubtful accounts between the two years and what it might indicate about the company's receivables management and financial forecasting.