What was the amount of 'Due from/to Related Parties, Net' for Chicken Guy in 2023?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
MEMBER'S EQUITY CHICKEN GUY (FRANCHISOR), LLC**
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Revenues | |||||
| Franchise Fees | $ | 394,333 | $ | 46,667 | $ 8,500 |
| Royalties | 795,451 | 490,037 | 257,456 | ||
| Total Revenues | 1,189,784 | 536,704 | 265,956 | ||
| Expenses | |||||
| General and Administrative | 337,103 | 69,024 | 208,782 | ||
| Net Income | 852,681 | 467,680 | 57,174 | ||
| Member's Equity, Beginning of Year | 592,668 | 124,988 | 67,814 | ||
| Member's Equity, End of Year | $ | 1,445,349 | $ | 592,668 | $ 124,988 |
YEARS ENDED DECEMBER 29, 2024, DECEMBER 31, 2023, AND DECEMBER 25, 2022 STATEMENTS OF CASH FLOWS CHICKEN GUY (FRANCHISOR), LLC
| 2024 2023 | 2022 | |||
|---|---|---|---|---|
| Cash Flows from Operating Activities | ||||
| Net Income | $ | 852,681 | $ 467,680 | $ 57,174 |
| Provision for Credit Losses | 20,366 | - | - | |
| Adjustments to Reconcile Net Income to Net Cash | ||||
| Provided by (Used for) Operating Activities: |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the 'Due from/to Related Parties, Net' for 2023 was ($318,739). This figure represents the net balance of cash advances between Chicken Guy and its related entities. These advances are non-interest bearing and are due upon demand.
For a prospective franchisee, this indicates the financial interactions Chicken Guy has with its related parties. It is important to note that the amount is negative, suggesting that Chicken Guy owed money to its related parties in 2023. This could be due to various reasons, such as shared resources, services, or loans between the entities.
Understanding these related-party transactions is crucial for franchisees as it provides insight into the financial structure and dependencies within the Chicken Guy organization. Franchisees should seek clarification from Chicken Guy regarding the nature of these related-party transactions and their potential impact on the franchise system's financial stability and operations. Investigating these relationships can help a franchisee assess the overall financial health and transparency of the franchisor.