What were the royalty expenses 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 royalty expenses for 2023 were $3,351,968. This figure is part of the overall operating expenses for that year. For a prospective franchisee, this indicates the scale of royalty payments Bb.Q Chicken collects system-wide.
Understanding this number in context with other financial data is crucial. While $3,351,968 represents the total royalties, it doesn't specify the royalty rate franchisees pay on their gross sales. Franchisees should refer to other sections of the FDD to determine the exact royalty rate and how it's calculated. Knowing the royalty rate allows a franchisee to project their own royalty payments based on estimated sales.
It's also important to note that this royalty expense is just one component of the total operating expenses, which amounted to $20,127,682 in 2023. Reviewing all operating expenses provides a comprehensive view of where money is being spent within the Bb.Q Chicken franchise system. Comparing these figures to previous years, like 2022 where royalty expenses were $2,393,571 and total operating expenses were $14,199,829, can reveal trends and growth patterns.
Prospective franchisees should analyze these figures carefully, alongside their own financial projections, to assess the affordability and potential profitability of a Bb.Q Chicken franchise. Consulting with a financial advisor is recommended to fully understand the financial implications.