What was the reported commission expense for Bb.Q Chicken in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ts, presentation, and disclosure accompanying consolidated financial statements.
Consolidated Schedule of Operation December 31, 2023 and 2022
Consolidated Schedule of Operation
| 2023 | 2022 | |
|---|---|---|
| OPERATING EXPENSES: | ||
| Advertising & marketing | $ 1,595,920 | $ 842,500 |
| Auto & local transportation | 55,921 | 49,906 |
| Bad debt expenses | 9,370 | 88,644 |
| Bank charges & credit card discounts | 196,556 | 176,111 |
| Commission | 424,518 | 370,079 |
| Communications | 73,870 | 38,199 |
| Consulting fees | 725,206 | 564,801 |
| Contribution | 150,279 | 71,000 |
| Depreciation & amortization (Note 2) | 368,402 | 233,324 |
| Dues & subscriptions | 261,806 | 183,954 |
| Employee benefits | 488,230 | 368,798 |
| Freight costs | 991,969 | 853,057 |
| Insurance | 231,502 | 256,419 |
| Lease expenses | 19,055 | 19,421 |
| Licenses & permits | 15,239 | 9,997 |
| Management fees | 16,599 | 32,297 |
| Meals & entertainment | 398,838 | 228,871 |
| Office supplies & expenses | 34,297 | 12,247 |
| Outside service & temporary help | - | 30,991 |
| Payroll processing fees | 24,683 | 15,935 |
| Payroll taxes | 511,255 | 371,530 |
| Penalty & interest | 4,980 | 5,857 |
| Professional fees | 609,952 | 435,249 |
| Rent | 1,436,564 | 1,252,684 |
| Repairs & maintenance | 284,944 | 267,582 |
| Research & development | 19,460 | 16,703 |
| Royalty expenses (Note 8) | 3,351,968 | 2,393,571 |
| Salaries | 5,969,810 | 3,940,577 |
| Sanitation | 117,259 | 71,308 |
| Security expenses | 38,192 | - |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the commission expenses for 2023 were $424,518. This figure is part of the operating expenses reported in the document. For comparison, the commission expenses in 2022 were $370,079.
This information is relevant for prospective franchisees as it provides insight into the operational costs incurred by Bb.Q Chicken. Understanding the commission expenses can help potential franchisees assess the financial health and cost structure of the franchise system. It's important to note that these figures reflect the expenses of Bb.Q Chicken as a whole and may not directly translate to the expenses a franchisee will incur.
Reviewing these figures in the context of overall operating expenses and comparing them to previous years can give a sense of the trends and cost management within the Bb.Q Chicken franchise. Franchisees should consider these expenses when projecting their own potential costs and profitability. It is also important to investigate what these commissions are paid for, and if any of those services would be needed at the individual franchise level.
A prospective franchisee should also compare these commission expenses with those of other similar franchise systems to benchmark Bb.Q Chicken's financial performance. Further due diligence, including discussions with existing franchisees, is recommended to gain a comprehensive understanding of the financial aspects of operating a Bb.Q Chicken franchise.