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 company experienced a net loss for the year 2024. Specifically, the consolidated statement of operations shows a net loss of $11,738, which represents -1.95% of total revenue. In contrast, Browns Chicken had net earnings of $92,304 for the year 2023, which was 12.01% of total revenue. This indicates a significant downturn in profitability from 2023 to 2024.
Additionally, the financial statement provides a breakdown of revenue sources and expenses. 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, including advertising and promotions ($204,128), employee benefits ($1,263), franchising expenses ($23,946), payroll taxes ($15,390), and salaries ($190,646). Selling, general, and administrative expenses amounted to $331,406.
The document also mentions a settlement income of $35,000 in 2024, which partially offset the operating loss. However, the loss from operations was ($46,738), or -6.51%. Furthermore, the financial statement includes a non-controlling interest of ($66,797). The net earnings attributable to Browns Chicken LLC were $55,059, which is 7.33%.
Prospective franchisees should carefully consider these financial results and trends. The shift from net earnings in 2023 to a net loss in 2024 could signal potential challenges in the business model or market conditions. It would be prudent for potential franchisees to discuss these financial results with Browns Chicken to understand the factors contributing to the change and the franchisor's plans to address the situation.