What is the total of Chester's International, LLC's current assets as of the date of the financial statement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
e reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified on Exhibit A.
The franchisor is Chester's International, LLC, currently located at 1531 3rd Avenue North, Suite 110, Birmingham, Alabama 35203. Its telephone number is (800) 646-9403.
| CURRENT ASSETS | |||
|---|---|---|---|
| Cash | $ 2,515,674 | $ 2,392,340 | |
| Accounts receivable, net of allowance for | |||
| doubtful accounts | 5,299,346 | 3,735,366 | |
| Due from related parties | 1,117,539 | 684,044 | |
| Inventories, net | 1,247,308 | 1,130,712 | |
| Prepaid expenses | 49,815 | 101,200 | |
| Total current assets | 10,229,682 | 8,043,662 | |
| PROPERTY AND EQUIPMENT, NET | 878,650 | 148,788 | |
| OPERATING LEASE RIGHT-OF-USE ASSETS, NET | 1,820,812 | 1,304,672 | |
| GOODWILL, NET | 1,613,657 | 1,936,388 | |
| 30,523 | 52,666 | ||
| INTANGIBLE ASSETS, NET | |||
| TOTAL ASSETS | $ 14,573,324 | $ 11,486,176 | |
| CURRENT LIABILITIES | |||
| --- | --- | --- | --- |
| Current maturities of long-term debt | $ 1,628,607 | $ 1,809,133 | |
| Accounts payable | 2,904,502 | 719,790 | |
| Accrued liabilities | 1,285,555 | 1,365,243 | |
| Customer deposits | 609,822 | 533,879 | |
| Current portion of operating lease liability | 181,240 | 398,805 | |
| Unearned franchise fees | 136,500 | 224,900 | |
| Total current liabilities | 6,746,226 | 5,051,750 | |
| LONG-TERM LIABILITIES | |||
| Operating lease liabilities, less current portion | 1,842,053 | 905,867 | |
| Long-term debt | 1,123,700 | 1,429,725 | |
| Total long-term liabilities | 2,965, |
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chester's 2025 Franchise Disclosure Document, the total current assets are detailed in the financial statements. The provided table shows that Chester's total current assets amounted to $10,229,682 as of the financial statement date. This figure represents the sum of cash, accounts receivable (net of allowance for doubtful accounts), due from related parties, inventories (net), and prepaid expenses.
Understanding the composition of current assets is crucial for prospective franchisees. These assets are considered liquid, meaning they can be readily converted into cash within a year. A substantial portion of Chester's current assets is tied up in accounts receivable, which represents money owed to Chester's by its customers. The next largest component is cash, followed by inventories and amounts due from related parties. Prepaid expenses make up a relatively small portion of current assets.
For comparison, the table also includes figures from a previous period. The total current assets for that period were $8,043,662. This indicates an increase in current assets from the previous period to the current period. Reviewing these figures helps potential franchisees assess the financial health and stability of Chester's.
It is important to note that these figures are based on the financial statements included in the FDD, and prospective franchisees should carefully review the entire document and consult with a financial advisor to fully understand the financial condition of Chester's.