What was the total amount of cash and cash equivalents held by 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, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company's consolidated balance sheets show their cash and cash equivalents for 2023. Browns Chicken held $78,676 in cash and cash equivalents in 2023. Additionally, the company held $65,330 in cash within a Variable Interest Entity (VIE).
A Variable Interest Entity (VIE) is a legal structure often used to isolate assets or specific business activities. The cash held within the VIE is separate from the general cash reserves of Browns Chicken.
For a prospective franchisee, understanding the cash position of Browns Chicken is crucial. It provides insight into the company's financial stability and its ability to meet short-term obligations. The combined cash and cash equivalents, including those in the VIE, totaled $144,006 in 2023. This figure can be compared to previous years and industry benchmarks to assess the company's financial health and liquidity.