What is the total amount of accrued payroll and compensated absences for Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| LFR Chicken | Lee's Distribution | Lee's Franchisor | Lee's Franchisor Canada Ltd. | Lee's 4-Wall LLC | LFRC RE Holdings, LLC | Elimination | LFR Chicken, LLC Total | |
|---|---|---|---|---|---|---|---|---|
| Current Liabilities: | ||||||||
| Accounts payable | $ 61,141 | - $ | $ - | $ 1,160,900 | $ - | $ (63,355) | ||
| Accrued payroll and compensated absences | 82,197 | - | - | - | 160,769 | - | - | 242,966 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the accrued payroll and compensated absences for LFR Chicken is $82,197 and for Lee's 4-Wall LLC is $160,769. The combined total for accrued payroll and compensated absences is $242,966.
This figure represents the amount of wages, salaries, and benefits that Lees Famous Recipe owes to its employees but has not yet paid out as of December 31, 2024. This is a standard accounting practice, where expenses are recognized when they are incurred, regardless of when the actual payment is made. For a prospective franchisee, understanding this liability is crucial as it reflects the company's short-term obligations and overall financial health.
Accrued payroll and compensated absences can fluctuate based on factors such as the number of employees, pay periods, and the timing of when employees take vacation or sick leave. Franchisees should monitor these figures to ensure that the company is managing its employee-related expenses effectively and maintaining sufficient cash flow to meet its obligations. Significant increases in this liability could indicate potential financial strain or changes in compensation policies.