What was the total amount of operating expenses for Bb.Q Chicken in 2022?
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 total operating expenses for the company in 2022 were $14,199,829. This figure encompasses a wide range of expenses, including advertising and marketing, auto and local transportation, bad debt expenses, bank charges and credit card discounts, commissions, communications, consulting fees, contributions, depreciation and amortization, dues and subscriptions, employee benefits, freight costs, and insurance. It also includes lease expenses, licenses and permits, management fees, meals and entertainment, office supplies and expenses, outside service and temporary help, payroll processing fees, payroll taxes, penalty and interest, professional fees, rent, repairs and maintenance, research and development, royalty expenses, salaries, sanitation, security expenses, supplies, travel, uniforms and laundry, and utilities.
Prospective franchisees should note that these operating expenses reflect the overall costs incurred by Bb.Q Chicken as a company, not necessarily the expenses a franchisee would incur operating a single franchise location. However, reviewing these figures can provide insight into the types and relative magnitude of expenses involved in running the Bb.Q Chicken franchise system. For example, the FDD reveals that in 2022, Bb.Q Chicken spent $842,500 on advertising and marketing, $3,940,577 on salaries, and $2,393,571 on royalty expenses.
Understanding the franchisor's operating expenses can help a potential franchisee assess the financial health and stability of the Bb.Q Chicken franchise system. While a franchisee's individual operating expenses will vary based on location, sales volume, and management practices, this overview provides a benchmark for comparison and can inform financial planning. Franchisees should carefully consider these expenses in conjunction with potential revenue and other costs to determine the potential profitability of a Bb.Q Chicken franchise.