What was the net cash used by financing activities for Browns Chicken in 2022?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | ||
|---|---|---|---|
| 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) |
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 used by financing activities in 2022 was $83,676. This figure reflects the total cash outflow resulting from Browns Chicken's financing activities during that year.
Specifically, the financing activities included payments on notes payable amounting to $5,676 and distributions to members totaling $78,000. These payments and distributions contributed to the overall net cash used in financing activities.
For a prospective franchisee, understanding these figures provides insight into how Browns Chicken manages its finances and returns capital to its members. It's important to consider these cash flow dynamics when evaluating the financial stability and practices of the franchise. Reviewing these figures over several years, as presented in the FDD, can reveal trends and inform a franchisee's investment decision.