table_specific

What were the total operating expenses for Bb.Q Chicken in 2022?

Bb_Q_Chicken Franchise · 2025 FDD

Answer 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 company's total operating expenses in 2022 were $14,199,829. This figure represents the sum of various expenses incurred by Bb.Q Chicken, 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, insurance, 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.

Breaking down the expenses, some of the most significant costs for Bb.Q Chicken in 2022 included salaries at $3,940,577, royalty expenses at $2,393,571, and rent at $1,252,684. Advertising and marketing expenses totaled $842,500, while freight costs amounted to $853,057. These figures provide insight into where Bb.Q Chicken allocates its resources and the relative importance of different operational aspects.

For a prospective franchisee, understanding these operating expenses is crucial for financial planning and assessing the potential profitability of a Bb.Q Chicken franchise. Franchisees should consider how these expenses might scale with their own operations and local market conditions. It is also important to note that these figures reflect the company's overall expenses and may not directly translate to the expenses of an individual franchise location. Factors such as location, sales volume, and management efficiency can significantly impact a franchisee's operating expenses.

It is also worth noting that some expenses, such as 'Outside service & temporary help' are listed as '-' for 2023, but have a value of $30,991 for 2022, and 'Security expenses' are listed as $38,192 for 2023, but '-' for 2022. This may be due to a change in accounting practices, or simply that the company did not incur those expenses in those years. A prospective franchisee should ask the franchisor about these changes to better understand the business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.