What was the total amount of Browns Chicken's prepaid expenses 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 total amount of prepaid expenses for the company in 2023 was $6,750. This figure is part of the company's current assets, which totaled $223,954 for the same year. Prepaid expenses are costs that Browns Chicken has paid in advance for goods or services that will be received in the future.
For a prospective franchisee, understanding the franchisor's prepaid expenses can offer insights into their financial management and obligations. It reflects how Browns Chicken manages its cash flow and anticipates future expenses. Reviewing these figures over several years, as presented in the FDD, can reveal trends and patterns in the company's financial practices.
It's important to note that prepaid expenses are just one component of Browns Chicken's overall financial health. A comprehensive analysis would involve examining all assets, liabilities, and cash flows to gain a complete picture. Prospective franchisees should consult with a financial advisor to fully understand the implications of these figures and how they relate to the franchise opportunity.