Are the Churchs Chicken financial statements presented for the last three fiscal years?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
At December 31, 2023 and December 25, 2022, accounts receivable that were presented on the consolidated balance sheets were net of allowances for doubtful accounts of $1.1 million and $1.3 million, respectively.
Fiscal year 2024 and 2023 were 52-week and 53-week years, respectively.
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from those estimates.
Revenue from the sale of food and beverage products at Company-operated restaurants is recognized when items are sold. Sales taxes collected from customers and remitted to governmental authorities are presented on a net basis in the consolidated statements of operations.
Revenues from franchise operations include royalty fees based on a percentage of restaurant sales, development fees associated with a franchisee's planned development of a specified number of restaurants within a defined geographic territory, franchise fees associated with the opening of new restaurants, and renewal fees associated with the renewal of the franchise contract.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Churchs Chicken includes consolidated balance sheets from December 31, 2023, and December 25, 2022. Additionally, the document mentions that fiscal years 2024 and 2023 were 52-week and 53-week years, respectively.
The FDD refers to the company's accounting practices, stating that the preparation of consolidated financial statements requires management to make estimates and assumptions. These estimates can affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities, as well as the reported amounts of revenue and expenses during each reporting period. Actual results could differ from these estimates.
The Churchs Chicken FDD also specifies how revenue is recognized. Revenue from company-operated restaurants is recognized when food and beverage products are sold. Sales taxes collected from customers and remitted to governmental authorities are presented on a net basis in the consolidated statements of operations. Franchise revenue includes royalty fees based on a percentage of restaurant sales, development fees, franchise fees for new restaurants, and renewal fees.