What were the royalty expenses for Bb.Q Chicken in 2024?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company operates as a Franchisor of B.B.Q Chicken. Franchise revenues principally consist of royalties, as well as marketing fees, which are primarily based on a percentage of franchise revenue. Franchise revenue also includes initial franchise fees, which are recognized as revenue when a substantial performance of franchisor obligation is complete, which is generally when a franchised unit is opened. The principal business address of the Company is 2134 North Central Road, Fort Lee, NJ 07024.
BBDOTQUSA KTOWN, INC. commenced operation in the State of New York on November 24, 2016, as a full-service restaurant.
BBDOTQUSA MIDTOWN, INC. commenced operation in the State of New York on August 15, 2022, as a full-service restaurant.
BBDOTQUSA ENGLEWOOD INC. commenced operation in the State of New Jersey on May 05, 2023, as a limited-service restaurant.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation:
The consolidated financial statements include the accounts of the Company and all subsidiaries, which are more than 50 percent owned or certain "variable interest entities" under accounting principles generally accepted in the United States of America. Inter-company items and transactions between companies included in the consolidation are eliminated, and unrealized inter-company profits in inventory and other assets are to be eliminated.
Notes to Consolidated Financial Statements December 31, 2024 and 2023
Basis of presentation:
The accompanying financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (US" GAAP").
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
I am unable to provide the exact royalty expenses for Bb.Q Chicken in 2024, as the provided excerpts from the 2025 Franchise Disclosure Document do not contain this specific financial information. While Item 23 discusses franchise revenues consisting of royalties and marketing fees, it does not specify the actual royalty amounts or percentages for 2024. The document also mentions initial franchise fees and their recognition as revenue. Notes to the Consolidated Financial Statements December 31, 2024 and 2023 are included, but without the actual financial data.
For prospective franchisees, it's important to understand the royalty structure and how it impacts profitability. The FDD does state that royalties are based on a percentage of franchise revenue, but the exact percentage is not disclosed in the provided excerpts. Understanding this percentage is crucial for forecasting expenses and potential earnings.
To gain clarity on royalty expenses, a prospective Bb.Q Chicken franchisee should ask the franchisor directly for detailed financial statements showing royalty fees collected in 2024. Additionally, they should inquire about the specific royalty rate applied to gross sales and whether this rate is subject to change. Understanding the factors that could influence royalty fees is essential for making an informed investment decision.