What was the total cost of vehicles owned by Browns Chicken as of December 31, 2022?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
arned, with an appropriate provision for estimated uncollectible amounts charged to general and administrative expense.
NOTE 5 - INSTALLMENT NOTES PAYABLE
| December 31, 2023 | December 31, 2022 | ||
|---|---|---|---|
| Ally Bank (Vehicle) – Payable in monthly | $ | - | $ 4,446 |
| installments of $504 including interest at |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company had a vehicle liability of $4,446 as of December 31, 2022. This liability was related to a loan from Ally Bank, payable in monthly installments of $504, which included interest at a rate of 4.97%. The loan was collateralized by an automobile.
In practical terms, this means that Browns Chicken had a loan outstanding for a vehicle at the end of 2022. The loan was being paid off in monthly installments, and the vehicle itself served as collateral. The presence of this vehicle liability on the balance sheet suggests that Browns Chicken owned at least one vehicle at that time, which was likely used for business purposes.
For a prospective franchisee, this information provides insight into the types of assets and liabilities that Browns Chicken typically carries on its balance sheet. While this specific liability may not be directly relevant to a franchisee's operations, it does offer a glimpse into the company's financial management practices and its approach to acquiring and financing assets. It is important to note that this figure represents only the vehicle-related liability and does not reflect the total value of all assets owned by Browns Chicken.