What was the total value of Churchs Chicken's long-term liabilities as of December 31, 2023?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Dec | December 31, 2023 | December 25, 2022 | ||||
|---|---|---|---|---|---|---|
| Liabilities and member's equity | ||||||
| Long-term liabilities; | W. T. | |||||
| Long-term finance lease liabilities | 8,904 | 9,192 | ||||
| Long-term operating lease liabilities | 24,849 | 28,294 | ||||
| Long-term debt, net of current maturities | 322,422 | 320,388 | ||||
| Deferred credits and other long-term liabilities | 17,818 | 17,804 | ||||
| Total long-term liabilities | - | 373,993 | 375,678 |
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 long-term liabilities as of December 31, 2023, amounted to $373,993.
This figure represents the sum of several long-term financial obligations. These include long-term finance lease liabilities, which totaled $8,904, long-term operating lease liabilities of $24,849, and long-term debt, net of current maturities, which was the most significant component at $322,422. Additionally, deferred credits and other long-term liabilities contributed $17,818 to the total.
A prospective Churchs Chicken franchisee should consider the franchisor's financial stability and long-term liabilities as indicators of the company's financial health. High long-term liabilities could indicate significant debt or lease obligations, which might affect the franchisor's ability to support its franchisees or invest in the brand's future growth.
It is also worth noting that the total long-term liabilities for the previous year, December 25, 2022, were $375,678, slightly higher than the 2023 figure. This decrease could be a positive sign, suggesting that Churchs Chicken is managing its long-term debt and lease obligations effectively.