What were the total current liabilities for Lees Famous Recipe in 2022?
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 |
| Taxes payable | - | - | - | 1,354 | 151,521 | 941 | - | 153,816 |
| Current portion of notes payable | 700,000 | - | - | - | 115,582 | - | 815,582 | |
| Current portion of operating lease liabilities | 35,500 | - | - | - | 92,949 | - | (27,463) | 100,986 |
| Current portion of deferred revenue | 0 | 79,818 | - | (2,314) | - | - | 77,504 | |
| Current portion of contingent consideration liability | 397,462 | 397,462 | ||||||
| Total current liabilities | 1,276,300 | 94,579 | 79,818 | 1,354 | 1,563,825 | 116,523 | (90,818) | 3,041,581 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the consolidated financial statements include a breakdown of current liabilities for LFR Chicken, LLC. In 2022, the total current liabilities were $3,041,581.
This figure represents the sum of several short-term obligations, including accounts payable, accrued payroll and compensated absences, taxes payable, the current portion of notes payable, the current portion of operating lease liabilities, the current portion of deferred revenue, and the current portion of contingent consideration liability. These are debts or obligations that Lees Famous Recipe expects to settle within one year.
Understanding the composition and magnitude of current liabilities is crucial for prospective franchisees. It provides insight into the company's short-term financial health and its ability to meet its immediate obligations. High current liabilities relative to current assets may indicate liquidity issues, which could affect the franchisor's ability to support its franchisees.
It is important to note that these liabilities are part of the consolidated financial statements for LFR Chicken, LLC, and may not directly reflect the financial position of individual Lees Famous Recipe franchise locations. A prospective franchisee should review the full financial statements and consult with a financial advisor to fully understand the implications of these liabilities.