What was the amount of Initial Franchise Fees collected by Browns Chicken in 2023?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
|
| BALANCE, END OF YEAR | $ 87,136 | $ 63,236 |
BROWN'S CHICKEN, LLC CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |||
|---|---|---|---|---|
| % Amount | Amount | % | ||
| REVENUE: | ||||
| Royalties | $ 403,743 | 52.54 | $ 399,453 | 50.60 |
| Initial Franchise Fees | 1,200 | 0.16 | - | - |
| Adv |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the total amount of initial franchise fees collected in 2023 was $1,200, representing 0.16% of the total revenue for that year. This is a relatively small portion of Browns Chicken's overall revenue stream, with the majority coming from royalties and advertising.
For a prospective franchisee, this indicates that Browns Chicken's revenue is not heavily reliant on initial franchise fees, which is a common practice in the franchise industry. This may suggest that Browns Chicken focuses more on the long-term success of its franchisees, as their ongoing royalties contribute significantly to the franchisor's revenue.
The document also provides comparative figures for 2022, though no initial franchise fees were collected that year. This variance from year to year could be due to the timing of new franchise openings or other factors. A potential franchisee should inquire about the typical number of franchises sold per year to better understand this revenue stream.
Overall, the financial data suggests that Browns Chicken has a stable revenue model, with royalties and advertising being the primary drivers. The relatively small amount of initial franchise fees collected in 2023 may be a positive sign for franchisees, as it indicates a focus on long-term partnerships and ongoing revenue generation.