What was the total value of Chesters' property and equipment, net, as of December 31, 2022?
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 |
| 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 |
| INTANGIBLE ASSETS, NET | 30,523 | 52,666 |
| TOTAL ASSETS | $ 14,573,324 | $ 11,486,176 |
| LIABILITIES AND MEMBERS' EQUITY | ||
| 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 |
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 property and equipment, net, was $148,788 as of December 31, 2022. This figure represents the depreciated value of Chesters's assets such as buildings, equipment, and vehicles used in the business operations.
For a prospective franchisee, this number provides insight into the capital investment Chesters has in its own infrastructure. It can be used as a benchmark when evaluating the financial health and asset management of the company. A significant change in this value from year to year could indicate investment in new equipment, disposal of assets, or changes in depreciation methods.
It's important to note that this value reflects Chesters's corporate level assets and not the investment required by individual franchisees to set up their own locations. Franchisees should refer to other sections of the FDD, such as Item 7, to understand their potential initial investment costs related to property and equipment.