What was the net value of Browns Chicken's property and equipment in 2022?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
lano,Caboor & Co.*
Catalano, Caboor & Co. Lombard, IL
March 31, 2024
BROWN'S CHICKEN, LLC CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022
ASSETS
| 2023 | 2022 | |||
|---|---|---|---|---|
| CURRENT ASSETS: | ||||
| Cash and Cash Equivalents | $ | 78,676 | $ | 60,971 |
| Cash - VIE | 65,330 | 42,971 | ||
| Accounts Receivable (Net of Allowance for Doubtful | ||||
| Accounts of $7,999 in 2023 and $8,588 in 2022) | 43,420 | 45,891 | ||
| Accounts Receivable - VIE (Net of Allowance for | ||||
| Doubtful Accounts of $0 in 2023 and $0 in 2022) | 24,810 | 19,649 | ||
| Uniform & Equipment Inventory | 4,968 | 4,373 | ||
| Prepaid Expenses | 6,750 | 1,952 | ||
| Total Current Assets | 223,954 | 175,807 | ||
| PROPERTY AND EQUIPMENT: | ||||
| Equipment | 44,834 | 44,834 | ||
| Vehicles | 121,465 | 110,801 | ||
| Subtotal | 166,299 | 155,635 | ||
| Less Accumulated Depreciation | (143,072) | (131,359) | ||
| Net, Property and Equipment | 23,227 | 24, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the net value of the company's property and equipment in 2022 was $24,276. This figure is calculated by taking the subtotal of equipment ($44,834) and vehicles ($110,801), which equals $155,635, and then subtracting accumulated depreciation of $131,359.
For a prospective franchisee, this indicates the value of the physical assets Browns Chicken owns, such as equipment and vehicles, after accounting for depreciation. It's a snapshot of the company's investment in these assets at a specific point in time. This number can be useful in assessing the financial health and stability of Browns Chicken.
It's important to note that these figures represent the company's assets and not necessarily the investment a new franchisee would need to make in their own Browns Chicken location. A franchisee's costs would depend on factors such as location, size, and whether they are building a new restaurant or taking over an existing one. Reviewing Browns Chicken's complete financial statements and speaking with existing franchisees can provide a more comprehensive understanding of the potential investment required.