What were the total current assets for Browns Chicken in 2023?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| CURRENT ASSETS: | ||
|---|---|---|
| Cash and Cash Equivalents | $ 37,437 | $ 78,676 |
| Cash - VIE | 20,532 | 65,330 |
| Accounts Receivable (Net of Allowance for Doubtful | ||
| Accounts of $0 in 2024 and $7,999 in 2023) | 21,293 | 43,420 |
| Accounts Receivable - VIE (Net of Allowance for | ||
| Doubtful Accounts of $0 in 2024 and $0 in 2023) | 14,423 | 24,810 |
| Uniform & Equipment Inventory | 4,625 | 4,968 |
| Prepaid Expenses | 4,350 | 6,750 |
| Total Current Assets | 102,660 | 223,954 |
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company's total current assets in 2023 were $223,954. This figure represents the sum of Browns Chicken's liquid assets and those that can be converted into cash within a year. These assets include cash and cash equivalents, cash from VIE (Variable Interest Entity), accounts receivable (net of allowance for doubtful accounts), uniform and equipment inventory, and prepaid expenses.
Understanding the composition of current assets is crucial for prospective franchisees. A healthy level of current assets indicates Browns Chicken's ability to meet its short-term obligations and invest in future growth. The accounts receivable figures, adjusted for doubtful accounts, provide insight into the collectability of payments from franchisees or other entities. Monitoring these figures over time can reveal trends in Browns Chicken's financial health and operational efficiency.
For a potential Browns Chicken franchisee, this information is useful for assessing the financial stability of the franchisor. While this is just one data point, it contributes to a broader understanding of the company's financial position. It is advisable to compare these figures with those of other similar franchises to benchmark Browns Chicken's performance and stability within the industry. Furthermore, prospective franchisees should seek clarification from Browns Chicken regarding the nature of the VIE and its impact on the company's overall financial structure.