What were the uninsured bank balances for Browns Chicken at December 31, 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
y of the expected residual returns of Brown's Chicken, LLC – Series A, it was concluded that consolidation better presents the financial information.
CASH
The Company occasionally will have amounts on deposit at financial institutions that exceed the FDIC insurance
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 $0 in uninsured bank balances as of December 31, 2024. This means that Browns Chicken held all of its cash deposits within the limits insured by the Federal Deposit Insurance Corporation (FDIC) at that time. The FDD also notes that the uninsured bank balances were $0 at December 31, 2023. Browns Chicken believes there is no significant risk with respect to these deposits.
For a prospective franchisee, this indicates that Browns Chicken is managing its cash responsibly by keeping deposits within insured limits. This reduces the risk of loss due to bank failure. While the company occasionally has amounts on deposit at financial institutions that exceed the FDIC insurance limit, the uninsured bank balances were $0 at both December 31, 2024 and 2023.
It is important to note that while the company believes there is no significant risk with respect to these deposits, it is still a good idea for franchisees to inquire about the company's cash management policies and procedures. This will help franchisees understand how the company is managing its cash and what steps are being taken to mitigate risk.