What were the total royalties collected by Antioch Pizza Shop in 2023?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 100,022 | | Total liabilities and stockholders' equity | $ | 293,279 | $ | 92,658 | $ | 126,781 |
STATEMENTS OF OPERATIONS
For the years ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Operating revenue | |||||
| Royalties | $ | 277,985 | $ 172,030 | $ | 204,692 |
| Marketing fees | 59,932 | 42,232 | 5 |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the total royalties collected in 2023 were $172,030. This figure represents the income Antioch Pizza Shop received from its franchisees based on a percentage of their sales, as stipulated in the franchise agreements. Royalties are a crucial revenue stream for the franchisor, supporting ongoing services and brand development.
For a prospective franchisee, understanding the franchisor's royalty income is important for assessing the financial health and stability of the franchise system. A consistent or growing royalty income indicates that franchisees are generating sales and the brand is maintaining its market presence. This can be a positive sign for potential investors.
However, it's also important to consider royalty amounts in relation to other revenue streams, such as initial franchise fees and marketing fees. In 2023, Antioch Pizza Shop also collected $42,232 in marketing fees and $25,000 in initial franchise fees, contributing to a total operating revenue of $379,901. Examining the composition of revenue can provide a more comprehensive view of the franchisor's financial model and how it supports its franchisees.
Overall, the reported royalty income for 2023 offers valuable insight into the financial performance of Antioch Pizza Shop. Prospective franchisees should analyze these figures in conjunction with other financial data and market information to make an informed investment decision.