What was the total value of Chesters' current liabilities?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| CURRENT LIABILITIES | |||
|---|---|---|---|
| Accounts payable | $ 1,070,100 | $ 2,904,502 | |
| Accrued liabilities | 2,070,417 | 1,285,555 | |
| Customer deposits | 361,152 | 609,822 | |
| Current maturities of long-term debt | 480,225 | 1,628,607 | |
| Current portion of operating lease liability | 121,564 | 181,240 | |
| Unearned franchise fees | 190,950 | 136,500 | |
| Total current liabilities | 4,294,408 | 6,746,226 |
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, the total current liabilities are listed for two different periods. The total current liabilities were $4,294,408 for one period and $6,746,226 for another period.
Current liabilities represent Chesters' obligations that are due within one year. These liabilities include accounts payable, accrued liabilities, customer deposits, current maturities of long-term debt, the current portion of operating lease liability, and unearned franchise fees.
A prospective franchisee should understand the composition and changes in these liabilities, as they reflect the company's short-term financial health and obligations. Significant fluctuations in these figures could indicate changes in Chesters' operational efficiency, debt management, or revenue recognition practices. Reviewing these liabilities in comparison to current assets can provide insights into Chesters' ability to meet its short-term obligations.