Where are non-refundable franchisees' deposits now presented on Chick Fil A's financial statements?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- Refundable franchisees' deposits previously presented in Franchisees' deposits is now presented in Other current liabilities.
- Non-refundable franchisees' deposits previously presented in Trade payables and other are now presented in Other current liabilities and Other long-term liabilities.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, non-refundable franchisee deposits, which were previously listed under "Trade payables and other," are now presented under "Other current liabilities" and "Other long-term liabilities" on the company's financial statements. This change is a reclassification impacting the presentation on the balance sheets.
This reclassification means that prospective Chick Fil A franchisees reviewing the financial statements should look for non-refundable deposits under these new categories. It is important to note that this change only affects how these deposits are presented and does not impact the actual consolidated financial results for any period.
Such reclassifications are not uncommon as companies refine their financial reporting for clarity and compliance with accounting standards. Franchisees should focus on understanding the nature of these liabilities rather than being concerned about the specific line item under which they are reported.