What were the total franchise fees Chicken Guy collected in 2023?
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, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the total franchise fees collected in 2023 were $46,667. This figure represents the revenue Chicken Guy recognized from initial franchise fees paid by new franchisees during that year. It's important to note that this revenue recognition may not equal the total cash received, as Chicken Guy recognizes these fees over the term of the franchise agreement, which is generally ten years.
For a prospective franchisee, this indicates the scale of franchise sales activity Chicken Guy experienced in 2023. A higher number would suggest more rapid expansion and potentially greater brand recognition. However, it is important to consider this figure in the context of the overall financial health of the company, as franchise fees are only one component of Chicken Guy's revenue stream.
Additionally, the FDD notes that Chicken Guy also recognized accelerated franchise revenue of $33,000 in 2023 due to one terminated franchise agreement. This means that Chicken Guy recognized revenue from a franchise agreement that was terminated early, which could be a result of the franchisee failing to meet their obligations or other factors. This accelerated revenue is separate from the standard franchise fees collected from new franchisees.
Therefore, when evaluating the franchise fee revenue, a prospective franchisee should also consider the number of franchise terminations and the amount of accelerated revenue recognized, as this could provide insights into the stability and success of existing Chicken Guy franchises.