What prepaid expenses did Browns Chicken have in 2023?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| CURRENT ASSETS: | ||
|---|---|---|
| Cash and Cash Equivalents | $ 37,437 | $ 78,676 |
| Cash - VIE | 20,532 | 65,330 |
| Accounts Receivable (Net of Allowance for Doubtful | ||
| Accounts of $0 in 2024 and $7,999 in 2023) | 21,293 | 43,420 |
| Accounts Receivable - VIE (Net of Allowance for | ||
| Doubtful Accounts of $0 in 2024 and $0 in 2023) | 14,423 | 24,810 |
| Uniform & Equipment Inventory | 4,625 | 4,968 |
| Prepaid Expenses | 4,350 | 6,750 |
| Total Current Assets | 102,660 | 223,954 |
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company's prepaid expenses in 2023 totaled $6,750. This figure is part of the company's current assets, which totaled $223,954 in 2023.
Prepaid expenses are costs that Browns Chicken has paid in advance for goods or services that will be used in the future. These could include items like insurance premiums, rent, or advertising fees. Because these expenses have already been paid but the benefit hasn't been fully realized, they are considered assets on the balance sheet.
For a prospective franchisee, understanding the franchisor's prepaid expenses can offer insights into their financial management and operational strategies. It's also worth noting that the prepaid expenses decreased from $6,750 in 2023 to $4,350 in 2024. Reviewing these figures over time can help potential franchisees assess the financial stability and operational efficiency of Browns Chicken.