How much did Browns Chicken spend on salaries 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 | - | - |
| Advertising | 357,273 | 46.50 | 377,481 | 47.82 |
| Vendor Promo Allowance | 6,150 | 0.80 | 12,454 | 1.58 |
| Total Revenue | 768,366 | 100.00 | 789,388 | 100.00 |
| DIRECT EXPENSES: | ||||
| Advertising and Promotions | 165,302 | 21.51 | 155,293 | 19.67 |
| Employee Benefits | 510 | 0.07 | - | - |
| Franchising Expenses | 13,499 | 1.76 | 10,302 | 1.31 |
| Payroll Taxes | 15,721 | 2.05 | 14,164 | 1.79 |
| Salaries | 193,807 | 25.22 | 173,789 | 22.02 |
| Total Direct Expenses | 388,839 | 50.61 | 353,548 | 44.79 |
| Gross Profit | 379,527 | 49.39 | 435,840 | 55.21 |
| SELLING, GENERAL, AND | ||||
| ADMINISTRATIVE EXPENSES | 287,223 | 37.38 | 296,705 | 37.59 |
| NET EARNINGS FOR THE YEAR | 92,304 | 12.01 | 139,135 | 17.62 |
| NON-CONTROLLING INTEREST | 23,900 | 3.11 | 46,1 |
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 consolidated statement of operations shows that in 2022, Browns Chicken spent $173,789 on salaries. This figure represents 22.02% of the company's total revenue for that year.
In 2023, Browns Chicken's spending on salaries increased to $193,807, which accounted for 25.22% of total revenue. This indicates a rise in salary expenses from 2022 to 2023.
Prospective franchisees should consider these figures in the context of overall expenses and revenue. Understanding the franchisor's financial performance can help franchisees assess the financial stability and potential profitability of the Browns Chicken franchise system. It's also important to compare these figures with industry benchmarks to evaluate whether Browns Chicken's salary expenses are in line with similar franchise businesses.