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Disclosure of franchising stores operating results
The operating results of the franchising stores were not disclosed in the company??s financial statements, except for the system-wide store revenue. From the data of annual report, we understand that the total of all franchising stores increased significantly from $152 million in 1993 to $383 million in 1994...
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However, we have no ideas whether such stores were making profits or not. The profitability of the franchising stores was directly related to the recoverability of Area Developer Financing (?°ADF?±). The total of amount of ADF was $201 million, for which Boston Chicken made no allowance as of Dec 25, 1994...
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