What is the difference in the value of Churchs Chicken's equipment from the previous year to the current year?
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 has decreased from December 25, 2022, to December 31, 2023. In 2022, the net value was $125,723, while in 2023, it was $120,042. This represents a decrease of $5,681 in the value of property and equipment.
This change in net value could be due to depreciation of existing assets, disposal of older equipment, or a lower investment in new equipment during 2023 compared to 2022. For a prospective franchisee, this information is relevant because it provides insight into the company's investment trends in its physical assets. A consistent decrease in this value might suggest cost-cutting measures or a strategic shift in resource allocation.
It's important to note that these figures represent the net value, which accounts for accumulated depreciation. Therefore, while the gross investment in property and equipment might have been higher, the net value reflects the actual worth of these assets after accounting for wear and tear. A potential franchisee should consider this trend in conjunction with other financial metrics to assess the overall financial health and investment strategy of Churchs Chicken.