How much did Browns Chicken collect in royalties as of December 31, 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
and therefore, excluded from revenue.
DISAGGREGATION OF REVENUE
The following table presents disaggregated revenues by revenue source for the years ended:
| December | December | |
|---|---|---|
| 31, 2024 | 31, 2023 | |
| Royalties | $ 369,763 | $ 403,743 |
| Initial Franchise Fee |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the company collected $369,763 in royalties as of December 31, 2024. This figure is part of the consolidated statements of operations for the years ended December 31, 2024, and 2023. The FDD also shows that in the previous year, December 31, 2023, Browns Chicken collected $403,743 in royalties.
For a prospective franchisee, this information provides insight into the revenue streams of Browns Chicken. Royalties typically represent a percentage of gross sales that franchisees pay to the franchisor in exchange for the use of the brand's trademarks, operating systems, and ongoing support. Seeing the royalty income can help a franchisee understand the financial health and stability of the franchisor.
It's important to note that the royalty income decreased from 2023 to 2024. A potential franchisee might want to inquire about the reasons for this decrease. It could be due to various factors such as a decline in overall sales, a change in the number of operating units, or modifications in the royalty structure. Understanding the reasons behind this change is crucial for assessing the potential risks and rewards of investing in a Browns Chicken franchise.
In addition to royalties, Browns Chicken also collected revenue from initial franchise fees, advertising contributions, vendor promo allowances, and other sources. As of December 31, 2024, initial franchise fees amounted to $5,000, advertising revenue was $337,137, vendor promo allowance was $7,891 and other revenue was $250. Total revenue for that year was $720,041. Reviewing these different revenue streams provides a more complete picture of Browns Chicken's financial performance and how it generates income.