What was the reported consulting fees 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 | - |
| Supplies | 474,655 | 353,143 |
| Travel | 940,988 | 424,606 |
| Uniforms & laundry | 4,908 | 796 |
| Utilities | ||
| 280,487 | 219,672 | |
| TOTAL OPERATING EXPENSES | $ 20,127,682 | $ 14,199,829 |
Independent Auditor's Report on Consolida
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the consulting fees expense for 2023 was $725,206. This figure represents the total amount Bb.Q Chicken spent on consulting services during that year.
For a prospective franchisee, this number provides insight into the scale of external expertise Bb.Q Chicken utilizes. Consulting fees can cover a range of services, such as business strategy, operational improvements, or specialized training programs. A higher consulting fee expense might indicate that Bb.Q Chicken is actively investing in improving its systems and support for franchisees.
It's important to note that this is just one expense category, and it should be considered in the context of Bb.Q Chicken's overall financial performance. Franchisees may want to inquire about the specific types of consulting services Bb.Q Chicken uses and how these services benefit franchisees directly. Understanding the nature of these consulting services can help a franchisee assess the value and support they can expect from the franchisor.