What were the management fees for Beggars Pizza in 2023?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | ||
|---|---|---|---|
| Net sales - royalties and other revenues | $ 1,593,982 | $ 1,520,563 | |
| Operating expenses: | |||
| Management fees | 579,820 | 666,106 | |
| Professional fees | 60,884 | 113,460 | |
| Brand development | 95,897 | - | |
| Trade show | 9,729 | - | |
| Donations | 30,000 | 25,000 | |
| Training | 10,920 | 9,820 | |
| Miscellaneous | 6,452 | 956 | |
| Total operating expenses | 793,702 | 815,342 | |
| Net income | $ 800,280 | $ 705,221 | |
| Members' equity - beginning of year | $ 201,534 | $ 232,400 | |
| Net income | 800,280 | 705,221 | |
| Distributions | (638,217) | (736,087) | |
| Members' equity - end of year | $ 363,597 | $ 201,534 |
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the management fees for 2023 were $579,820. This figure is part of the operating expenses reported in Item 23, which details the receipts of the company. These fees represent a significant portion of the total operating expenses, which amounted to $793,702 for the same year.
Management fees are a common expense for franchisors, covering the costs associated with managing and supporting the franchise system. These fees can include salaries for management personnel, office expenses, and other overhead costs related to running the franchise organization. For a prospective franchisee, understanding the magnitude of these fees can provide insight into the operational costs and financial health of Beggars Pizza.
It's important to note that while the management fees for 2023 are specified, the FDD does not elaborate on exactly what services or activities these fees cover. A potential franchisee should inquire with Beggars Pizza about the specific services included in these management fees to fully understand their value and how they contribute to the overall support and success of the franchise system. This due diligence will help in assessing the financial viability and potential return on investment of a Beggars Pizza franchise.