How much settlement income did Browns Chicken receive in 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| | BALANCE, END OF YEAR | 20,339 $ | $ 87,136 |
BROWN'S CHICKEN, LLC CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 2023 Amount % Amount | % | ||||
|---|---|---|---|---|---|
| REVENUE: | |||||
| Royalties | $ 369,763 | 51.36 | $ | 403,743 | 52.54 |
| Initial Franchise Fees | 5,000 | 0.69 | 1,200 | 0.16 | |
| Advertising | 337,137 | 46.82 | 357,273 | 46.50 | |
| Vendor Promo Allowance | 7,891 | 1.10 | 6,150 | 0.80 | |
| Other Revenue | 250 | 0.03 | - | _ | |
| Total Revenue | 720,041 | 100.00 | 768,366 | 100.00 | |
| DIRECT EXPENSES: | |||||
| Advertising and Promotions | 204,128 | 28.35 | 165,302 | 21.51 | |
| Employee Benefits | 1,263 | 0.18 | 510 | 0.07 | |
| Franchising Expenses | 23,946 | 3.33 | 13,499 | 1.76 | |
| Payroll Taxes | 15,390 | 2.14 | 15,721 | 2.05 | |
| Salaries | 190,646 | 26.48 | 193,807 | 25.22 | |
| Total Direct Expenses | 435,373 | 60.48 | 388,839 | 50.61 | |
| Gross Profit | 284,668 | 39.52 | 379,527 | 49.39 | |
| SELLING, GENERAL, AND | |||||
| ADMINISTRATIVE EXPENSES | 331,406 | 46.03 | 287,223 | 37.38 | |
| (Loss) Income from Operations | (46,738) | (6.51) | 92,304 | 12.01 | |
| SETTLEMENT INCOME | 35,000 | 4.56 | - | ||
| NET (LOSS) EARNINGS FOR THE YEAR | (11,738) | (1.95) | 92,304 | 12.01 | |
| NON-CONTROLLING INTEREST | (66,797) | (9.28) | 23,900 | 3.11 | |
| NET EARNINGS ATTRIBUTABLE TO | $ 55,059 | 7.33 | $ | 68,404 | 8.90 |
| BROWN |
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 $35,000 in settlement income during the year 2024. This income contributed to the company's financial performance for the year. Without this income, Browns Chicken would have reported a larger loss from operations.
Settlement income can arise from various legal or contractual disputes that Browns Chicken may have been involved in. This type of income is not a recurring revenue stream like royalties or franchise fees, so prospective franchisees should not expect similar income to be a consistent part of Browns Chicken's financial performance in future years.
For a potential Browns Chicken franchisee, this information highlights the importance of understanding all revenue sources, including one-time gains, when evaluating the financial health of the franchisor. It's crucial to focus on sustainable revenue streams like royalties and franchise fees to assess the long-term viability of the franchise system.