What was the total cost of sales for Bb.Q Chicken in 2024?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
dated Statements of Income and Deficit December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| REVENUE | ||
| Service and fee revenues | $ 15,720,302 | $ 9,238,838 |
| Product sales (Note 14) | 63,180,448 | 49,680,268 |
| Total Revenue | 78,900,750 | 58,919,106 |
| COST OF SALES | ||
| Inventories - beginning | 6,786,479 | 5,216,192 |
| Purchases (Note 9) | 46,049,707 | 36,788,575 |
| Duties & freight-in | 3,320,658 | 3,536,677 |
| 56,156,844 | 45,541,444 | |
| Inventories - ending | (5,708,945) | (6,786,479) |
| Total Cost of Sales | 50,447,899 | 38,754,965 |
| GROSS PROFIT FROM SALES | 28,452,851 | 20,164,141 |
| OPERATING EXPENSES - Schedule | (28,261,777) | (20,127,682) |
| INCOME FROM OPERATION | 191,074 | 36,459 |
| OTHER INCOME & EXPENSES | ||
| Interest income (interest expenses) | (101,937) | (118,205) |
| Miscellaneous | (49,966) | 214,437 |
| Total Other Income & Expenses | (151,902) | 96,232 |
| INCOME BEFORE PROVISION FOR INCOME TAX | 39,172 | 132,691 |
| PROVISION FOR INCOME TAX (Note 2) | (90,301) | (24,803) |
| Net loss | (51,129) | 107,888 |
| REATAINED DEFICIT - beginning | (3,554,585) | (3,662,47 |
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 cost of sales for 2024 was $50,447,899. This figure is derived from several components, including beginning inventories, purchases, duties and freight-in, and ending inventories. These costs reflect the direct expenses Bb.Q Chicken incurred to provide its services and products.
Specifically, the cost of sales is calculated by adding the beginning inventory ($6,786,479), purchases ($46,049,707), and duties & freight-in ($3,320,658), which totals $56,156,844. Then, the ending inventory ($5,708,945) is subtracted from this total, resulting in the total cost of sales of $50,447,899 for the year 2024.
Understanding the cost of sales is crucial for prospective franchisees as it provides insight into the efficiency of Bb.Q Chicken's supply chain management and its ability to control direct costs associated with its products and services. A lower cost of sales relative to revenue can indicate higher profitability, while a higher cost of sales may suggest potential areas for improvement in operational efficiency.