What was the purchase of property and equipment for Browns Chicken in 2023?
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 property and equipment for Browns Chicken in 2023 totaled $23,227. This figure is calculated from the equipment ($44,834) and vehicles ($121,465) subtotaling $166,299, less accumulated depreciation of $143,072.
This number reflects the net book value of property and equipment, meaning the original cost less any depreciation. For a prospective franchisee, this indicates the level of investment Browns Chicken itself has in its physical assets. It's important to note that this is not necessarily the amount Browns Chicken spent on new property and equipment in 2023 alone, but rather the net value of these assets at the end of that year.
Depreciation is an accounting method to allocate the cost of an asset over its useful life. The document also mentions that depreciation expense for book purposes was $11,712 for the year ended December 31, 2023. This means that the value of Browns Chicken's property and equipment decreased by this amount due to wear and tear or obsolescence, according to their accounting practices.
Prospective franchisees should consider these figures in the context of their own potential investment in property and equipment. While Browns Chicken's figures reflect the company's overall investment, a new franchisee will need to assess the costs of equipping their own location, which may vary depending on the size and location of the franchise.