What was the member's equity at the beginning of 2024 for Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Current Assets | |||
| Cash | $ 256 | $ 1,405 | $ 18,762 |
| Royalty Receivables, Net | 127,714 | 237,320 | 42,689 |
| Due from Related Parties | 2,618,604 | 1,895,776 | 1,577,037 |
| Total Current Assets | 2,746,574 | 2,134,501 | 1,638,488 |
| Restricted Cash | 37,500 | 37,500 | 37,500 |
| Contract Assets | 187,250 | 127,500 | 127,500 |
| Total Assets | $ 2,971,324 | $ 2,299,501 | $ 1,803,488 |
| LIABILITIES AND MEMBER'S EQUITY | |||
| Current Liabilities | |||
| Accounts Payable | $ 60,000 | $ - | $ - |
| Due to Franchisee | 200,000 | - | - |
| Due to Related Party | 33,476 | - | - |
| Customer Deposits | 55,000 | 95,000 | 100,000 |
| Contract Liabilities, Current Portion | 18,500 | 41,500 | 16,000 |
| Total Current Liabilities | 366,976 | 136,500 | 116,000 |
| Contract Liabilities, Long-Term Portion | 1,158,999 | 1,570,333 | 1,562,500 |
| Total Liabilities | 1,525,975 | 1,706,833 | 1,678,500 |
| Member's Equity | 1,445,349 | 592,668 | 124,988 |
| Total Liabilities and Member's Equity | $ 2,971,324 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the member's equity at the beginning of 2024 was $592,668. This figure is derived from the audited financial statements which include data from December 29, 2024, December 31, 2023, and December 25, 2022.
Member's equity represents the owner's stake in the company, essentially the assets minus the liabilities. The beginning of year equity is a key indicator of the company's financial position at that time. For a prospective franchisee, this number provides insight into the financial stability and growth of Chicken Guy.
It's important to note that these figures are from the franchisor's operations and may not directly correlate to the performance of individual franchise locations. However, a strong member's equity for the franchisor can suggest better support and resources available to franchisees. Reviewing these figures in conjunction with other financial metrics, such as revenue and net income, offers a more comprehensive understanding of Chicken Guy's financial health.
Prospective franchisees should analyze these trends over the three years presented to assess the consistency and trajectory of Chicken Guy's financial performance. Consulting with a financial advisor is recommended to fully understand the implications of these financial statements.