What was the total value of Browns Chicken's prepaid expenses in 2022?
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 value of their prepaid expenses in 2022 was $1,952.
Prepaid expenses are payments Browns Chicken made for goods or services that they will receive in the future. These are considered assets on the balance sheet because they represent future economic benefits for Browns Chicken. Examples of prepaid expenses could include insurance premiums, rent, or advertising costs that have been paid in advance.
For a prospective franchisee, understanding the franchisor's prepaid expenses can provide insight into their financial management practices and how they handle future obligations. It's also useful to compare these figures year-over-year to identify any trends or significant changes that could impact the franchisee's own financial planning and operational costs.
Reviewing the balance sheets and related financial statements is a crucial step in assessing the financial health and stability of Browns Chicken as a franchise opportunity.