What was the total value of Chesters' inventories, net, as of December 31, 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
mingham, Alabama April 4, 2024
CHESTER'S INTERNATIONAL, LLC BALANCE SHEETS DECEMBER 31, 2023 AND 2022
| ASSETS | ||
|---|---|---|
| 2023 | 2022 | |
| 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 |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the total value of Chesters' inventories, net, as of December 31, 2023, was $1,247,308. This figure represents the value of raw materials, work in progress, and finished goods that Chesters had in its possession at that date, after accounting for any reserves for obsolescence or other factors that could reduce their value.
For a prospective franchisee, understanding the franchisor's inventory value can provide insights into the scale of their operations and how efficiently they manage their resources. A higher inventory value might suggest a larger operation or potentially slower inventory turnover, while a lower value could indicate a more streamlined operation or faster turnover.
It's important to note that this figure reflects Chesters's inventory, not the inventory that an individual franchisee would be required to maintain. Franchisees will typically need to maintain their own inventory of food products and supplies to meet customer demand, and the cost of this inventory will be a significant expense. Reviewing Chesters's financial statements can still offer a benchmark for understanding inventory management within the system.