What was the amount of restricted cash held by Churchs Chicken in 2020?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain cash accounts are required to be maintained by the 2021 Securitization (described in Note 8, Long-term debt), its indenture, and other related agreements. These cash accounts may be used only for the purposes specified in the 2021 Securitization Agreements. The Company has presented these cash accounts as Restricted cash in the current asset section on the consolidated balance sheets based upon the expected date of cash distribution.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
Based on the 2025 Churchs Chicken Franchise Disclosure Document, the provided financial statements do not include the amount of restricted cash held by Churchs Chicken in 2020. The balance sheets provided are for 2021, 2022, 2023 and 2024.
Restricted cash, as described in the notes to the consolidated financial statements, pertains to cash accounts maintained per the 2021 Securitization agreements. These funds are earmarked for specific uses as outlined in those agreements. For prospective franchisees, understanding the fluctuations and restrictions on cash is crucial for assessing the company's financial health and stability.
To gain clarity on the restricted cash held by Churchs Chicken in 2020, a prospective franchisee should directly request this information from the franchisor. Understanding the historical trends in restricted cash can provide a more complete picture of the company's financial management and obligations.