What was the total amount of Churchs Chicken's current liabilities in 2021?
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 | ||
| Due from member | 75,691 | 58,588 | ||
| Total current assets | 90,798 | 76,519 | ||
| Long-term assets: | ||||
| Property and equipment, net | 111,791 | 120,042 | ||
| Finance lease right-of-use assets | 13,266 | 7,131 | ||
| Operating lease right-of-use assets | 24,572 | 24,221 | ||
| Trademarks and other intangible assets, net | 285,311 | 294,128 | ||
| Goodwill | 26,390 | 30,160 | ||
| Other assets, net | 1,247 | 1,389 | ||
| Total long-term assets | - | 462,577 | 477,071 | |
| Total assets | S | 553,375 | S | 553,590 |
| Liabilities and members' equity | ||||
| Current liabilities: | ||||
| Accounts payable | S | 6,232 | S | 8,348 |
| Accrued liabilities | F. | 4,932 | 21 | 5,614 |
| Current maturities of long-term debt | 1,919 | 5,637 | ||
| Current finance lease liabilities | 486 | 269 | ||
| Current operating lease liabilities | 3,223 | 3,263 | ||
| Total current liabilities | > | 16,792 | 23,131 |
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 company's total current liabilities in 2021 were $16,792. This figure represents the sum of several short-term financial obligations, including accounts payable, accrued liabilities, current maturities of long-term debt, current finance lease liabilities, and current operating lease liabilities. These are debts or obligations that Churchs Chicken was expected to settle within one year.
For a prospective franchisee, understanding the franchisor's current liabilities is crucial because it provides insight into the company's short-term financial health and stability. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees or invest in the brand. Conversely, a manageable level of current liabilities suggests that the franchisor is in a good position to meet its short-term obligations.
It is important to note that these figures are based on the franchisor's financial statements and may not directly reflect the financial performance of individual franchise locations. However, the financial health of the franchisor can indirectly impact franchisees, particularly in areas such as marketing support, supply chain management, and overall brand reputation. Therefore, reviewing the franchisor's financial statements is a key part of the due diligence process for any prospective franchisee.