What was the amount of Initial Franchise Fees revenue for 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 revenue from initial franchise fees in 2023 was $1,200, representing 0.16% of the total revenue for that year. This is a small percentage of the overall revenue, with the majority coming from royalties and advertising. In 2023, royalties accounted for $403,743 (52.54%) and advertising brought in $357,273 (46.50%).
For a prospective franchisee, this indicates that Browns Chicken's revenue stream is not heavily reliant on initial franchise fees. Instead, it depends more on the ongoing royalties and advertising contributions from its existing franchise locations. This could mean that Browns Chicken is more focused on long-term growth and support of its franchisees rather than simply selling new franchises.
It's important to note that the initial franchise fee revenue can fluctuate from year to year, as seen by the increase to $5,000 in 2024. A potential franchisee should inquire about the number of new franchises sold each year and the factors that influence these sales. Understanding these trends can provide insight into the growth and stability of the Browns Chicken franchise system.