What was the amount of debt borrowing for Churchs Chicken as of December 31, 2023?
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 | ||||
| Debt borrowing | 23,000 | 32,00 | 00 | |
| Principal payments on long-term debt | (20,440) | (29,9) | 32) | |
| Cash divid |
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 company's debt borrowing as of December 31, 2023, was $23,000. This figure is part of the broader financial activities related to the company's operations. It is important to note that this borrowing is just one component of Churchs Chicken's overall financial strategy, which also includes principal payments on long-term debt and cash dividends to members.
For a prospective franchisee, understanding the debt borrowing activities of Churchs Chicken can provide insights into the financial health and strategies of the company. While a debt borrowing of $23,000 might seem like a small amount, it is essential to consider it in the context of the company's total liabilities, assets, and overall financial performance. A potential franchisee should also look at how these borrowings are used and whether they contribute to the growth and stability of the franchise system.
It's also crucial to compare these figures with previous years to identify any trends or significant changes in Churchs Chicken's borrowing behavior. Analyzing the company's financial statements over several years can offer a more comprehensive understanding of its financial management practices and potential risks or opportunities for franchisees. Prospective franchisees should consult with financial advisors to fully assess the implications of Churchs Chicken's debt borrowing on their investment decision.