What was the net increase or decrease in cash for Browns Chicken in 2023?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
04 | 8.90 | | BROWN'S CHICKEN LLC | | | | | |
BROWN'S CHICKEN, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net (Loss) Earnings | $ (11,738) | $ 92,304 |
| Adjustments to Reconcile Net Earnings to Net | ||
| Cash Flows Provided By Operating Activities: | ||
| Non-Cash Items | ||
| Depreciation and Amortization | 11,020 | 11,713 |
| (Increase) Decrease in | ||
| Accounts Receivable | 32,514 | (2,690) |
| Uniform & Equipment Inventories | 343 | (595) |
| Prepaid Expenses | 2,400 | (4,798) |
| Increase in | ||
| Accounts Payable | 6,168 | 7,171 |
| Accrued Payroll | 1,256 | 69 |
| Total Adjustments | 53,701 | 10,870 |
| Net Cash Provided By Operating Activities | 41,963 | 103,174 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Purchase of Property and Equpment | - | (10,664) |
| Net Cash (Used) | - | (10,664) |
| By Investing Activities | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Payments on Notes Payable | - | (4,446) |
| Distributions to Members | (128,000) | (48,000) |
| Net Cash (Used) By Financing Activities | (128,000) | (52,446) |
| Ne |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the net increase in cash for Browns Chicken in 2023 was $40,064. This indicates that Browns Chicken had a positive cash flow during the year, meaning its cash inflows exceeded its cash outflows. This increase in cash could be attributed to various factors, such as increased revenue, decreased expenses, or proceeds from financing activities.
For a prospective franchisee, a positive net increase in cash for Browns Chicken suggests financial stability and efficient management. It implies that the company is generating sufficient cash to cover its operational expenses, invest in growth opportunities, and potentially distribute profits to its members. This can be a reassuring sign for franchisees who are considering investing in the Browns Chicken brand.
However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks. A single year's performance may not be indicative of long-term trends, and it's crucial to analyze Browns Chicken's financial statements over several years to assess its overall financial health and sustainability. Additionally, prospective franchisees should compare Browns Chicken's cash flow performance with that of its competitors to gauge its relative position in the market.