Does the Churchs Chicken FDD include a balance sheet as part of the financial statements?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
I received a Church's Texas Chicken Franchise Disclosure Document April 30, 2025 that included the following exhibits (the effective dates of this disclosure document in states with franchise registration laws are listed on the State Cover Page):
- A. List of State Administrators
- B. List of State Agencies/Agents for Service of Process
- C. Franchise Agreement
- D. Amendment to Franchise Agreement for Convenience Stores and Travel Plazas
- E. Amendment for Co-Branded Restaurants
- F. Renewal Addendum
- G. Development Agreement (Non-Exclusive)
- H. Amendment to Development Agreement (Exclusive)
- I. List Of Franchised Locations; List Of Franchise Agreements Signed, But Restaurant Not Open; List Of Developers; And List Of Former Franchisees
- J. Operations Manual Table of Contents
- K .Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the document includes financial statements. Specifically, Exhibit K to the FDD is the financial statements. Furthermore, in the notes to the consolidated financial statements, the document references consolidated balance sheets. The balance sheets include items such as restricted cash and accounts receivable. At the end of 2023 and 2022, the accounts receivable presented on the consolidated balance sheets were net of allowances for doubtful accounts of $1.1 million and $1.3 million, respectively.
Prospective franchisees should review these balance sheets and related financial statements carefully. Understanding the franchisor's financial health is crucial in assessing the stability and long-term viability of the franchise system. The balance sheet provides a snapshot of the company's assets, liabilities, and equity at a specific point in time, offering insights into its liquidity, solvency, and overall financial structure.
It is important for potential franchisees to consult with a financial advisor or accountant to analyze the financial statements and understand the implications for their investment. This analysis can help in making an informed decision about whether to invest in a Churchs Chicken franchise.