How does Lees Famous Recipe value its inventory?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
tanding | 1,989 | - | | 1,989 | | Additional paid-in capital | 11,998,011 | - | - | 11,998,011 | | Accumulated deficit | (839,693) | - | - | (839,693) | | Member's equity | - | 11,056,425 | (11,056,425) | - | | Total equity | 11,160,307 | 11,056,425 | (11,056,425) | 11,160,307 | | Total Liabilities and Equity | $ 11,171,512 | $ 47,968,705 | $ (11,056,425) | $ 48,083,792 |
ARTEMIS RESTAURANT CORP. LFR CHICKEN, LLC CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2023
| 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 Assets: | ||||||||
| Cash and cash equivalents | $ 6,364,658 | $ (73,903 | $ 82,561 | $ 329,014 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the details of how Lee's Famous Recipe values its inventory is not explicitly detailed. However, the consolidated balance sheets do show inventory as a current asset for LFR Chicken, Lee's Distribution, and Lee's 4-Wall LLC.
Specifically, as of the provided financial statement, the inventory for LFR Chicken is listed as $26,184 and for Lee's Distribution, the inventory is not specified. Lee's 4-Wall LLC has an inventory of $286,118. The total inventory across these entities amounts to $312,302.
Because the exact accounting method used to determine the value of inventory is not described in the excerpt, prospective franchisees should ask Lee's Famous Recipe for more details about their inventory valuation practices. Understanding the inventory valuation method is important for assessing the financial health and performance of Lee's Famous Recipe and its related entities.