What was the net value of Browns Chicken's property and equipment in 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| PROPERTY AND EQUIPMENT: | ||
| Equipment | 44,834 | 44,834 |
| Vehicles | 121,465_ | 121,465 |
| Subtotal | 166,299 | 166,299 |
| Less Accumulated Depreciation | (154,092) | (143,072) |
| Net, Property and Equipment | 12,207 | 23,227 |
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 property and equipment in 2024 was $12,207. This figure is derived from the original cost of equipment ($44,834) and vehicles ($121,465), which totals $166,299. From this subtotal, accumulated depreciation of $154,092 is subtracted to arrive at the net value.
For a prospective franchisee, this indicates the depreciated value of Browns Chicken's physical assets. It reflects the remaining value of assets like equipment and vehicles after accounting for wear and tear over time. This can be useful in understanding the company's investment in physical assets and how they are being depreciated for accounting purposes.
It's important to note that the value of property and equipment can fluctuate based on new purchases, sales, and depreciation policies. Reviewing these figures over several years, as presented in the balance sheets, can provide a clearer picture of Browns Chicken's capital asset management.