What was the total amount Bb.Q Chicken spent on royalty expenses 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 | - |
| 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 Consolidating Information December 31, 2023 and 2022
Independent Auditors' Report on Consolidating Information
To the Board of Director and Stockholders of BBDOTQ USA, Inc.:
We have audited the accompanying consolidated financial statements of BBDOTQ USA, Inc and its subsidiaries for the period ended December 31, 2023 and 2022, and our report thereon dated April 25,
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the company's royalty expenses for the year 2022 totaled $2,393,571. This figure represents the amount Bb.Q Chicken paid to its parent company or related entities for the use of their trademarks, operational systems, and other intellectual property. Royalty expenses are a standard cost in franchising, reflecting the ongoing support and brand access provided by the franchisor.
For a prospective Bb.Q Chicken franchisee, understanding the franchisor's royalty expenses can provide insight into the financial relationship between the franchisor and its parent company. It's important to note that these expenses are separate from the royalties that franchisees pay to Bb.Q Chicken. The franchisor's royalty expenses could influence the overall financial health and stability of the franchise system, potentially affecting the level of support and resources available to franchisees.
It is also worth noting that Bb.Q Chicken's total purchases, including food items and related supplies, from the Parent Company was $5,430,056 in 2022. This indicates a significant reliance on the parent company for essential supplies, which could impact the franchisee's cost of goods and overall profitability. Franchisees should carefully evaluate these related-party transactions to ensure fair pricing and terms.