What were the total operating expenses for Bb.Q Chicken in 2023?
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 Consolid
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 2023 were $20,127,682. 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.
Other operating expenses for Bb.Q Chicken include lease expenses, licenses and permits, management fees, meals and entertainment, office supplies and expenses, 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 understand that these operating expenses reflect the costs incurred by the franchisor, Bb.Q Chicken, in supporting the franchise system. These expenses do not represent the operating costs that an individual franchisee will incur to run their own Bb.Q Chicken restaurant. Reviewing these expenses can, however, provide insight into where the franchisor is investing resources to support the brand and its franchisees.