What was the net earnings for the year for Browns Chicken in 2023?
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 | 4 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the net earnings for the year 2023 was $92,304, representing 12.01% of total revenue. This figure reflects the company's profitability before accounting for non-controlling interests. After accounting for non-controlling interests, the net earnings attributable to Browns Chicken LLC was $68,404, which is 8.90% of total revenue.
In 2023, Browns Chicken's total revenue was $768,366, derived from royalties ($403,743 or 52.54%), initial franchise fees ($1,200 or 0.16%), advertising ($357,273 or 46.50%), and vendor promo allowance ($6,150 or 0.80%). Direct expenses totaled $388,839, resulting in a gross profit of $379,527. Selling, general, and administrative expenses amounted to $287,223.
Prospective franchisees should note that these figures represent the overall financial performance of Browns Chicken, LLC, and not necessarily the performance of individual franchise locations. While the net earnings provide insight into the company's financial health, potential franchisees should also consider factors such as initial investment costs, ongoing fees, and local market conditions when evaluating the franchise opportunity. Reviewing the complete financial statements and consulting with a financial advisor is recommended to gain a comprehensive understanding of the potential risks and rewards.