As of December 31, 2023, what was the net value of property and equipment for Churchs Chicken?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
, 2024
2312-4393389
2
A member firm of Ernet & Young Global Ermited
| Dec | December 31, 2023 | December 25, 2022 | ||||
|---|---|---|---|---|---|---|
| Assets | - | |||||
| Current assets: | ||||||
| Cash and cash equivalents | S | 4,189 | $ | 2,640 | ||
| Restricted cash | 2,163 | 3,066 | ||||
| Accounts receivable, net | 6,351 | 7,388 | ||||
| Inventory | 735 | 700 | ||||
| Prepaid expenses and other | 4,493 | 935 | ||||
| Due from member | 58,588 | 36,281 | ||||
| Total current assets | 76,519 | 51,010 | ||||
| Long-term assets: | ||||||
| Property and equipment, net | 120,042 | 125,723 | ||||
| Finance lease right-of-use assets | 7.131 | 7,586 | ||||
| Operating lease right-of-use assets | 24,221 | 26,800 | ||||
| Trademarks and other intangible assets, net | 294,128 | 303,260 | ||||
| Goodwill, net | 30,160 | 33,930 | ||||
| Other assets, net | 1,389 | 992 | ||||
| Total long-term assets | 477,071 | 498,291 | ||||
| Total assets | S | 553,590 | $ | 549,301 | ||
| Liabilities and member's equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | S | 8,348 | $ | 6,382 | ||
| Accrued habilities | 5,614 | 5,164 | ||||
| Current maturities of long-term debt | 5,637 | 4,216 | ||||
| Current finance lease liabilities | 269 | 203 | ||||
| Current operating lease liabilities | 3,263 | 2,817 | ||||
| Total current liabilities | 1 | 23,131 | 18,782 | |||
| Long-term liabilities; | W. T. | |||||
| Long-term finance lease liabilities | 8,904 | 9,192 | ||||
| Long-term operating lease liabilities | 24,849 | 28,294 | ||||
| Long-term debt, net of current maturities | 322,422 | 320,388 | ||||
| Deferred credits and other long-term liabilities | 17,818 | 17,804 | ||||
| Total long-term liabilities | - | 373,993 | 375,678 | |||
| Commitments and contingencies | - | |||||
| Member's equity: | ||||||
| Contributed capital | 122,652 | 139,877 | ||||
| Retained earnings | 33,814 | 14,964 | ||||
| Total member's equity | 156,466 | 154,841 | ||||
| Total liabi |
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 net value of property and equipment as of December 31, 2023, was $120,042. This figure represents the depreciated value of Churchs Chicken's physical assets, such as land, buildings, and equipment, after accounting for accumulated depreciation.
For a prospective franchisee, this indicates the level of investment Churchs Chicken has in its physical infrastructure. It is important to note that this value reflects the franchisor's assets and not the investment required by a new franchisee to open their own Churchs Chicken location. Franchisees will need to make their own investments in property and equipment, the costs of which are detailed elsewhere in the FDD.
The FDD also provides a comparative figure for the previous year, December 25, 2022, which was $125,723. This shows a decrease in the net value of property and equipment from 2022 to 2023. This decrease could be due to factors such as depreciation, asset disposals, or a reduction in capital expenditures on new equipment. A potential franchisee may want to inquire about the reasons for this change to better understand Churchs Chicken's investment strategy.
It's also worth noting that the FDD includes details on the components of property and equipment, such as land, buildings and improvements, equipment, and construction-in-progress, as well as accumulated depreciation. Reviewing these components can provide a more detailed understanding of the nature and condition of Churchs Chicken's assets.