What amount of restricted cash did Chicken Guy have on December 29, 2024?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ents and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or conditions.
Cash, Cash Equivalents and Restricted Cash
The Company considers all highly liquid debt investments with an initia
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the company had $37,500 in restricted cash as of December 29, 2024. The FDD also provides figures for restricted cash for the prior two years. The amount of restricted cash was also $37,500 on December 31, 2023, and December 25, 2022.
Restricted cash, as detailed in the FDD, consists of funds collateralizing certain surety bonds maintained by Chicken Guy. This means that the cash is not freely available for the company's operational use but is held as security for these bonds.
A prospective franchisee should understand the nature of these surety bonds and why Chicken Guy is required to maintain them. It is also important to note that while the amount of restricted cash has remained constant over the three years presented in the balance sheets, this may not always be the case, and it could potentially impact the company's liquidity and financial flexibility.