How much did Browns Chicken spend on advertising and promotions in 2023?
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's direct expenses for advertising and promotions in 2023 totaled $165,302, representing 21.51% of total revenue. This figure is part of the consolidated statements of operations, which also include data for 2022 and 2024 for comparison.
For a prospective franchisee, understanding these advertising and promotion expenditures is crucial. It provides insight into how Browns Chicken invests in brand awareness and customer acquisition. A higher investment could indicate a strong commitment to marketing support for franchisees, while a lower figure might suggest a greater reliance on individual franchisee efforts.
It's also important to note that these figures are part of the consolidated financial statements, which include both Browns Chicken, LLC and its advertising fund, Browns Chicken, LLC – Series A. This consolidation provides a more comprehensive view of the company's financial activities related to advertising and promotions. Franchisees should analyze these trends over multiple years to assess the consistency and effectiveness of Browns Chicken's advertising strategies.
Reviewing these figures in conjunction with other revenue and expense items can give a franchisee a better understanding of the overall financial health and marketing strategy of Browns Chicken. Furthermore, comparing these advertising expenditures with those of similar franchise systems can help a potential franchisee evaluate the competitiveness of Browns Chicken's marketing efforts.