What were the total 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 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.