What was the total amount of Member's Equity for Chicken Guy in 2024?
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. This figure represents the ownership stake in Chicken Guy (Franchisor), LLC, after deducting total liabilities from total assets. It is a key indicator of the company's financial health and stability.
For a prospective franchisee, a higher member's equity generally suggests a more financially stable franchisor. This can translate to a greater likelihood of Chicken Guy being able to support its franchisees through training, marketing, and ongoing operational assistance. It also indicates the franchisor has a solid foundation for future growth and development of the brand.
It is important to note that while a strong member's equity is a positive sign, prospective franchisees should also consider other financial metrics, such as revenue trends, net income, and cash flow, to gain a comprehensive understanding of Chicken Guy's financial performance. Reviewing the complete audited financial statements, including the notes, is essential for assessing the overall financial health and risks associated with investing in a Chicken Guy franchise.
Industry standards often see fluctuations in member's equity depending on the growth stage of the franchise system, reinvestment strategies, and overall profitability. Comparing Chicken Guy's member's equity to similar franchise systems can provide additional context. Furthermore, understanding how Chicken Guy manages its liabilities and assets in relation to its equity can offer insights into its financial management practices.