What was the total amount of Accounts Payable - VIE for Browns Chicken in 2023?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
tegral part of these financial statements)
BROWN'S CHICKEN, LLC CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022
LIABILITIES AND MEMBERS' EQUITY
| 2023 | 2022 | ||
|---|---|---|---|
| CURRENT LIABILITIES: | |||
| Accounts Payable | $ 16,968 | $ 11,819 | |
| Accounts Pa |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the Accounts Payable - VIE (Variable Interest Entities) for 2023 was $5,356. This figure represents the amount Browns Chicken owed to its VIEs, which are entities where control is achieved through means other than voting rights, as of the end of the 2023 fiscal year.
For a prospective franchisee, understanding the Accounts Payable - VIE is crucial because it reflects part of Browns Chicken's financial obligations. A higher amount in accounts payable could indicate tighter cash flow management or delayed payments to these entities. Conversely, a lower amount might suggest efficient handling of financial obligations.
It's important to note that VIEs are consolidated into Browns Chicken's financial statements because Browns Chicken absorbs a majority of the VIE's expected losses and/or receives a majority of the VIE's expected residual returns. This consolidation provides a more comprehensive view of Browns Chicken's overall financial position, including its obligations to these entities. Franchisees should monitor these figures to assess the financial health and stability of Browns Chicken.