What is the net book value of Churchs Chicken's land, buildings, and equipment?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Land | $ | 74,741 | $ | 76,754 |
|---|---|---|---|---|
| Buildings and improvements | 40,012 | 36,513 | ||
| Equipment | 25,175 | 21,716 | ||
| Construction-in-progress | 1,402 141,330 | 2,198 137,181 | ||
| Less accumulated depreciation | (21 |
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 book value of property and equipment can be derived from the provided financial statements. As of December 31, 2023, the net value was $120,042. This figure is calculated by summing the values of land ($74,741), buildings and improvements ($40,012), equipment ($25,175), and construction-in-progress ($1,402), then subtracting accumulated depreciation ($21,288).
In the previous year, as of December 25, 2022, the net value was $125,723. This was derived from land ($76,754), buildings and improvements ($36,513), equipment ($21,716), and construction-in-progress ($2,198), less accumulated depreciation ($11,458).
For a prospective Churchs Chicken franchisee, these figures represent the net value of the company's physical assets after accounting for depreciation. Monitoring these values over time can provide insights into the company's investment in its physical infrastructure and how these assets are being depreciated. Understanding the depreciation methods and schedules used by Churchs Chicken can be valuable for franchisees in managing their own asset accounting and financial planning.