What were the net earnings for the year attributable to members' equity for Browns Chicken 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 net earnings for the year attributable to members' equity in 2023 was $68,404. This figure represents the portion of the company's net earnings that is allocated to the owners or members of Browns Chicken LLC after accounting for non-controlling interests. In 2023, the beginning balance of members' equity was $512,892, and distributions to members totaled $48,000, resulting in an end-of-year balance of $533,296.
For a prospective franchisee, this indicates the profitability of Browns Chicken and how earnings are distributed among its members. It's important to note that while net earnings attributable to members were $68,404, distributions of $48,000 were also made to members, affecting the final equity balance. Understanding these figures can help a franchisee assess the financial health and stability of Browns Chicken.
It is also important to consider the non-controlling interest, which had net earnings of $23,900 in 2023. This shows the total net earnings for the year was higher than the amount attributable to members. Reviewing these figures over several years, as presented in the FDD, can provide a more comprehensive understanding of the company's financial performance and trends. A potential franchisee should analyze these trends to evaluate the investment opportunity Browns Chicken presents.