How much did Browns Chicken receive from Vendor Promo Allowance in 2022?
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 company received $12,454 from Vendor Promo Allowance in 2022. This revenue stream accounted for 1.58% of the company's total revenue for that year.
Vendor Promo Allowances represent funds received from various vendors, likely in exchange for promoting their products or services within the Browns Chicken franchise system. This form of revenue can fluctuate depending on the agreements Browns Chicken establishes with its vendors and the promotional activities undertaken.
For a prospective franchisee, understanding the Vendor Promo Allowance is important as it reflects a portion of Browns Chicken's revenue that is not directly tied to royalties, franchise fees, or advertising contributions. The franchisee may want to inquire about how these funds are utilized and whether franchisees benefit directly or indirectly from these vendor promotions. A decrease in Vendor Promo Allowance from 2022 to 2023 could signal changes in vendor relationships or promotional strategies, which could impact the overall financial performance of Browns Chicken.