What was the cash and restricted cash at the beginning of the year 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 combined cash and restricted cash at the beginning of the year 2023 was $56,262. This figure represents the total of the company's readily available cash and funds held in restricted accounts at the close of the 2022 fiscal year, which then became the starting balance for 2023.
Specifically, the 2025 FDD provides a breakdown of these amounts. For the period ending December 25, 2022, Chicken Guy had $18,762 in cash and $37,500 in restricted cash. The sum of these two amounts equals the $56,262 reported as the 'Cash and Restricted Cash, Beginning of Year' for 2023 in the statement of cash flows.
For a prospective franchisee, understanding the franchisor's cash position and how it manages its funds is crucial. The beginning cash balance can be an indicator of the company's financial health and its ability to support its franchisees. Restricted cash, in particular, often relates to specific obligations or projects, and knowing the nature of these restrictions can provide further insight into the franchisor's financial practices. Reviewing these figures in the context of Chicken Guy's overall financial statements can help potential franchisees assess the stability and growth potential of the franchise system.