What was the net loss/earnings 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 company experienced a net loss for the year 2024. Specifically, the net loss was $(11,738), which represents -1.95% of total revenue. This contrasts with the previous year, 2023, when Browns Chicken had net earnings of $92,304, or 12.01% of total revenue.
In 2024, Browns Chicken's total revenue was $720,041, derived from royalties ($369,763), initial franchise fees ($5,000), advertising ($337,137), vendor promo allowance ($7,891), and other revenue ($250). Direct expenses totaled $435,373, resulting in a gross profit of $284,668. However, selling, general, and administrative expenses of $331,406 led to a loss from operations of $(46,738). A settlement income of $35,000 partially offset this loss, but the non-controlling interest further reduced the net earnings attributable to Browns Chicken LLC to $55,059.
Prospective franchisees should carefully consider the factors contributing to the net loss in 2024, such as increased administrative expenses, and compare these figures with previous years to understand the financial trends of Browns Chicken. Understanding the reasons behind the shift from a net earning in 2023 to a net loss in 2024 is crucial for assessing the financial stability and potential risks associated with investing in a Browns Chicken franchise.