What was the amount of cash held by Chicken Guy as of December 29, 2024?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 29, | ||
|---|---|---|
| 2024 | ||
| Cash | $ | 256 |
| Restricted Cash | 37,500 | |
| $ 37,756 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the company's cash holdings as of December 29, 2024, were $256. In addition to cash, Chicken Guy also held $37,500 in restricted cash at that time. The total of cash and restricted cash amounted to $37,756.
It is important to note that the company considers all highly liquid debt investments with an initial maturity of three months or less at the date of purchase to be cash equivalents. However, as of December 29, 2024, Chicken Guy did not have any cash equivalents.
Prospective franchisees should be aware of the distinction between cash and restricted cash. Restricted cash is typically funds set aside for a specific purpose and may not be readily available for general business operations. In Chicken Guy's case, the restricted cash is used to collateralize certain surety bonds maintained by the company. Understanding the levels and nature of cash and liquid assets is crucial for assessing the financial health and stability of Chicken Guy.