What was the total amount of Non-Controlling Interest 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 Payable - VIE | 5,356 | 3,334 | |
| Accrued Payroll | 3,411 | 3,342 | |
| Notes Payable, Current | - | 4,446 | |
| Total Current Liabilities | 25,735 | 22,941 | |
| NON-CURRENT LIABILITIES: | |||
| Notes Payable, Non-Current | - | - | |
| Total Non-Current Liabilities | - | - | |
| Total Liabilities | 25,735 | 22,941 | |
| EQUITY: | |||
| Members' Equity (Page 5) | 533,296 | 512,892 | |
| Non-Controlling Inter |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the Non-Controlling Interest for 2023 was $87,136. This figure represents the portion of equity in a subsidiary not attributable to the parent company, Browns Chicken, indicating that there are outside ownership stakes in some of its consolidated entities. For a prospective franchisee, this detail from the balance sheet provides insight into the financial structure and potential external influences on Browns Chicken's overall financial health. Understanding the non-controlling interest can help franchisees assess the stability and complexity of the franchise's financial arrangements.
Specifically, the presence of a non-controlling interest suggests that Browns Chicken has consolidated financial statements that include entities where it owns a majority stake but not 100%. This is further clarified in Note 2, which explains that the consolidated financial statements include the accounts of Browns Chicken, LLC and Browns Chicken, LLC – Series A (Advertising Fund). The accounting policies note that Brown's Chicken consolidates variable interest entities (VIEs) where it absorbs a majority of the expected losses or receives a majority of the expected residual returns.
For a franchisee, this means that the financial performance of these consolidated entities, including the advertising fund, impacts the overall financial picture of Browns Chicken. While the non-controlling interest itself may not directly affect day-to-day operations of a franchise, it is an indicator of the broader financial relationships and obligations of the franchisor. Therefore, understanding these consolidated relationships can provide a more comprehensive view of the franchisor's financial position and potential risks or benefits.
Prospective franchisees might want to inquire further about the nature of these non-controlling interests, the specific entities involved, and how the financial performance of those entities could impact the franchise system. Understanding the dynamics between Browns Chicken and its consolidated entities can offer a more informed perspective on the financial stability and strategic direction of the franchise.