What was the net value of Churchs Chicken's accounts receivable in 2010?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | - | 2021 | 1010 | |
|---|---|---|---|---|
| Current assets: | ||||
| Cash and cash equivalents | S | 3,551 | $ | 4,189 |
| Restricted cash | 2,058 | 2,163 | ||
| Accounts receivable, net | 8,210 | 6,351 | ||
| Inventory | 820 | 735 | ||
| Prepaid expenses and other | 468 | 4.493 |
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 accounts receivable in 2010 was $6,351. This figure represents the amount of money owed to Churchs Chicken by its franchisees and other parties, net of allowances for doubtful accounts. Accounts receivable primarily consist of royalties, rents, and miscellaneous items due from franchisees, typically within 14 days of each week's sales.
The accounts receivable balance is a key indicator of Churchs Chicken's financial health and its franchisees' ability to meet their financial obligations. A higher accounts receivable balance could indicate potential issues with franchisees' financial performance or collection efforts. The allowance for doubtful accounts reflects the company's estimate of receivables that may not be collectible, based on factors such as historical experience, franchisee financial stability, and market conditions.
Prospective franchisees should consider the accounts receivable balance and the allowance for doubtful accounts as part of their due diligence. Understanding the terms and collection practices for accounts receivable can provide insights into the financial relationship between Churchs Chicken and its franchisees. This information, combined with other financial data, can help potential franchisees assess the overall financial stability and risk associated with investing in a Churchs Chicken franchise.