What was the value of Churchs Chicken's equipment in the previous year?
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 | |
| Long term liabilities: | ||||
| Long-term finance lease liabilities | 15,532 | 8.904 | ||
| Long-term operating lease liabilities | 24,378 | 24,849 | ||
| Long-term debt, net of current maturities | 312,299 | 322,422 | ||
| Deferred credits and other long-term liabilities | 16,206 | 17,818 | ||
| Total long-term liabilities | 368,415 | 373,993 | ||
| Commitments and contingencies | ||||
| Member's equity: | ||||
| Contributed capital | 102,825 | 122,652 | ||
| Retained earnings | 65,343 | 33,814 | ||
| Total member's equity | S | 168,168 | 156,466 | |
| Total liabil |
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 property and equipment was $120,042 in 2022. This figure represents the depreciated value of all physical assets owned by Churchs Chicken, such as cooking equipment, furniture, and fixtures, across all its company-owned locations.
For a prospective franchisee, this number provides insight into the scale of investment Churchs Chicken has in its physical infrastructure. It is important to note that this value reflects the company's owned assets and not the potential investment a new franchisee would need to make to equip their own restaurant. Franchisees should refer to Item 7 of the FDD, which outlines the estimated initial investment, including equipment costs, for a new Churchs Chicken location.
Understanding the franchisor's investment in property and equipment can help franchisees assess the financial health and stability of the company. However, it is more relevant for franchisees to focus on the specific costs associated with setting up their own franchise, as detailed in other sections of the FDD. This includes understanding the types of equipment required, approved vendors, and any financing options available to cover these costs.