What was the total members' equity for Browns Chicken in 2022?
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 total members' equity in 2022 was $576,128. This figure represents the combined equity attributable to the members of Browns Chicken, LLC, and the non-controlling interest. Members' equity alone was $512,892, while the non-controlling interest accounted for $63,236.
Understanding the components of equity is crucial for prospective franchisees as it reflects the financial stability and ownership structure of Browns Chicken. A higher equity figure generally indicates a stronger financial position, which can be reassuring for franchisees considering investing in the brand. The non-controlling interest represents the portion of equity in a subsidiary not attributable to the parent company, Browns Chicken, LLC, in this case.
It's important to note that these figures are based on the consolidated balance sheets, which include the accounts of Browns Chicken, LLC, and its advertising fund, Brown's Chicken, LLC – Series A. This consolidation provides a comprehensive view of the company's financial health, taking into account all material intercompany transactions that have been eliminated. Prospective franchisees should review these financial statements carefully to assess the overall financial performance and stability of Browns Chicken before making an investment decision.