What was the reported amount for Accounts Payable - VIE for Browns Chicken in 2022?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached hereto as Exhibit A is Brown's audited balance sheet as of December 31, 2024, December 31, 2023, and December 31, 2022, and the Statement of Operations, Statement of Changes in Members' Equity, and Statement of Cash Flows for the years then ended.
Also attached as Exhibit A is Brown's unaudited balance as of March 30, 2025, and its Statement of Operations for the 2 months ended on March 30, 2025.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
I am unable to provide the specific amount for Accounts Payable - VIE for Browns Chicken in 2022, as this information is not present within the provided excerpts from the 2025 Franchise Disclosure Document. While the document includes financial statements and auditor's reports, it does not break down the accounts payable specifically related to Variable Interest Entities (VIEs). The FDD does discuss the consolidation of financial statements including Brown's Chicken, LLC and Brown's Chicken, LLC – Series A (Advertising Fund), which is identified as a VIE. It explains the accounting principles behind consolidating VIEs, noting that Brown's Chicken consolidates the VIE because it absorbs a majority of the expected losses or receives a majority of the residual returns. The financial statements included in Exhibit A of the FDD contain balance sheets as of December 31, 2024, December 31, 2023, and December 31, 2022, as well as statements of operations, changes in members' equity, and cash flows for the years then ended. However, the specific line item for "Accounts Payable - VIE" is not detailed in the provided excerpts. A prospective franchisee should ask Browns Chicken for a detailed breakdown of their accounts payable, specifically the amounts associated with Variable Interest Entities, to fully understand the company's liabilities and financial obligations.