What was the net cash provided by operating activities for Browns Chicken in 2023?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
$ 92,955 | 11.77 | | BROWN'S CHICKEN LLC | | | | |
BROWN'S CHIKEN, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net Earnings | $ | 92,304 | $ 139,135 |
| Adjustments to Reconcile Net Earnings to Net | |||
| Cash Flows Provided (Used) By Operating Activities: | |||
| Non-Cash Items | |||
| Allowance for Bad Debts | - | - | |
| Depreciation and Amortization | 11,713 | 26,333 | |
| Loss on Disposal of Fixed Assets | - | - | |
| (Increase) Decrease in | |||
| Accounts Receivable | (2,690) | 12,661 | |
| Uniform & Equipment Inventories | (595) | (2,018) | |
| Prepaid Expenses | (4,798) | (834) | |
| Increase (Decrease) in | |||
| Accounts Payable | 7,171 | (47,999) | |
| Accrued Payroll | 69 | 171 | |
| Accrued Expenses | - | (49,622) | |
| Deferred Revenue | - | - | |
| Total Adjustments | 10,870 | (61,308) | |
| Net Cash Provided (Used) By Operating Activities | 103,174 | 77,827 | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Proceeds From the Disposal of Other Assets | - | - | |
| Payments Received on Loans to Franchisees | - | - | |
| Purchase of Property and Equpment | (10,664) | (34,933) | |
| Due From Related Party | - | - | |
| Net Cash Provided (Used) By Investing Activities | (10,664) | (34,933) | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Payments on Notes Payable | (4,446) | (5,676) | |
| Distributions to Members | (48,000) | (78,000) | |
| Net Cash (Used) By Financing Activities | (52,446) | (83,676) | |
| Net Incre |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $103,174. This figure represents the cash generated from the company's normal business operations during that year. It's a key indicator of Browns Chicken's ability to fund its operations, make investments, and meet its debt obligations.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. A positive and stable cash flow from operations suggests that Browns Chicken is a healthy and sustainable business. This can provide reassurance that the franchisor is financially stable and capable of supporting its franchisees.
However, it's important to consider this figure in conjunction with other financial metrics. For example, a high net cash provided by operating activities could be offset by significant cash outflows from investing or financing activities. Therefore, a thorough review of Browns Chicken's complete financial statements is necessary to gain a comprehensive understanding of its financial health.
Furthermore, a prospective franchisee should compare Browns Chicken's cash flow from operations to that of other similar franchise systems to assess its relative performance. It is also important to understand how Browns Chicken uses its cash flow and whether it is reinvesting in the business to support future growth and innovation.