What was the total value of Chick Fil A's restaurant activity liability in 2023?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $ 1,407,908,682 | $ 1,266,114,339 |
| Short-term investments | - | 25,018,613 |
| Accounts and notes receivable | 193,839,681 | 230,650,868 |
| Inventories | 68,744,639 | 55,818,954 |
| Prepaid expenses and other assets | 135,258,521 | 144,397,618 |
| Total current assets | $ 1,805,751,523 | $ 1,722,000,392 |
| Property and equipment, at cost | ||
| Leased to restaurant franchisees | ||
| Land | 1,046,787,800 | 933,955,993 |
| Operating lease assets | 2,875,129,893 | 2,829,610,368 |
| Finance lease and other assets | 1,967,369,201 | 1,577,201,914 |
| Buildings | 2,721,671,065 | 2,424,054,415 |
| Leasehold improvements | 5,831,234,084 | 4,832,258,331 |
| Fixtures and equipment | 2,189,814,058 | 1,906,723,022 |
| Office land, buildings, fixtures, and equipment | 1,614,106,955 | 1,131,731,945 |
| Equipment in storage and construction in progress | 825,865,021 | 759,224,800 |
| Corporate leases, operating lease assets | 44,528,752 | 48,822,2 |
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the restaurant activity liability for 2023 was valued at $231,257,539. This figure represents the financial obligations Chick Fil A had related to its restaurant operations during that year. Restaurant activity liability is a component of the company's current liabilities, which are obligations due within a year.
For a prospective franchisee, understanding this figure provides insight into the scale of financial activity and potential liabilities associated with Chick Fil A's operations. It is important to note that this liability is on Chick Fil A's balance sheet, not the franchisee's. However, it can reflect on the financial health and stability of the franchisor, which indirectly affects franchisees.
This number is part of the overall financial picture presented in Chick Fil A's consolidated balance sheets. Reviewing these figures over several years, as the document provides data for 2022 and 2024 as well, can reveal trends and provide a more comprehensive understanding of the company's financial management and risk profile. Franchisees should consider these liabilities in the context of Chick Fil A's total assets and equity to assess the company's financial leverage and ability to meet its obligations.