What was the net (loss) earnings for the year for Browns Chicken 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-CONTR |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the net (loss) earnings for the year 2024 was a loss of $11,738, representing -1.95%. In contrast, the net earnings for the year 2023 were $92,304, representing 12.01%.
These figures reflect the overall financial performance of Browns Chicken as a company. It's important to note that this is not the same as the potential earnings of an individual franchise location. A prospective franchisee should focus on understanding the factors that contributed to the loss in 2024 and the earnings in 2023 to assess the potential risks and opportunities associated with investing in a Browns Chicken franchise.
Furthermore, the FDD also shows the net earnings attributable to Browns Chicken LLC, which was $55,059 for 2024 and $68,404 for 2023. These figures represent the portion of the company's earnings that are directly attributable to the parent company, after accounting for non-controlling interests. Reviewing these figures in conjunction with the overall net (loss) earnings provides a more comprehensive view of the company's financial health and profitability.