What was the Member's Equity at the end 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 end of 2024 was $1,445,349. The FDD also provides Member's Equity figures for the end of 2023 and 2022, which were $592,668 and $124,988, respectively. This represents the accumulated capital and retained earnings of Chicken Guy as of the end of each fiscal year. The company's fiscal year ends on the Sunday closest to December 31.
Member's equity is a crucial metric for prospective franchisees as it reflects the financial stability and growth of the franchisor. A higher member's equity generally indicates a stronger financial position. The increase in Chicken Guy's member's equity from $592,668 in 2023 to $1,445,349 in 2024 suggests a significant improvement in the company's financial health over that year.
It is important to note that while member's equity provides a snapshot of the company's financial position, it should be evaluated in conjunction with other financial metrics, such as revenue, expenses, and liabilities, to gain a comprehensive understanding of the company's overall financial performance. Reviewing the balance sheets and income statements included in Item 21 of the FDD will provide a more complete picture. Prospective franchisees should consult with a financial advisor to fully assess the financial health of Chicken Guy before making an investment decision.
In addition to the end-of-year figures, the FDD includes unaudited financial statements for the period ending July 14, 2025. These statements show a Member's Equity of $1,971,698 as of June, indicating continued growth in equity. This information can help potential franchisees assess the recent financial trajectory of Chicken Guy.