What was the amount of capital expenditures for Churchs Chicken as of December 25, 2022?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
nce at December 31, 2023 | S | 122,652 | 5 | 33,814 | $ | 156,466 |
| Dec | ember 31, | December 25 | 5, | |
|---|---|---|---|---|
| 2023 | 2022 | |||
| Operating activities | _ | |||
| Net income | S | 18,850 | $ 12,30 | 00 |
| Adjustments to reconcile net income to net cash | ||||
| provided by operating activities: | ||||
| Depreciation and amortization | 26,220 | 24,0 | 18 | |
| Loss (gain) on asset dispositions | 3,076 | (1,6 | 56) | |
| Non-cash increase in debt obligation | 9 | 8 | ||
| Non-cash operating lease adjustments | (420) | (2: | 51) | |
| Non-cash finance lease adjustments | 233 | -1 | 87 | |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable, net | 1,037 | (2) | 74) | |
| Inventory | (35) | 1 | ||
| Prepaid expenses and other | (3,558) | 1,46 | 64 | |
| Accounts payable and due from member | (20,341) | (33,2 | 71) | |
| Accrued liabilities | 450 | (1,60 | 67) | |
| Total change in net working capital | (22,447) | (33,7- | 47) | |
| Other long-term assets and liabilities | (1,712) | (33 | 58) | |
| Net cash provided by operating activities | 23,809 | 01 | ||
| Investing activities | ||||
| Capital expenditures | (8,498) | (6,2) | 80) | |
| Net cash used in investing activities | 7 | (8,498) | (6,2) | |
| Financing activities |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the capital expenditures as of December 25, 2022, were $(6,280). This figure represents the net cash used in investing activities related to capital expenditures during that period.
For a prospective franchisee, capital expenditures typically include investments in new equipment, property improvements, or building construction necessary to set up and maintain the franchise location. The negative value indicates that Churchs Chicken spent $6,280,000 on these types of investments during the specified period.
It's important to note that this figure reflects the franchisor's capital expenditures and may not directly represent the investment required by a new franchisee to open a Churchs Chicken restaurant. Franchisees should refer to Item 7 of the FDD for detailed information on the estimated initial investment, which includes costs such as real estate, construction, equipment, and initial inventory.