What was the total amount of initial franchise fees collected by 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the total amount of initial franchise fees collected in 2024 was $5,000. This figure is part of the company's consolidated statement of operations for the years ending December 31, 2024, and 2023. The initial franchise fees accounted for 0.69% of Browns Chicken's total revenue for 2024.
For a prospective franchisee, this indicates the relative importance of initial franchise fees to Browns Chicken's overall revenue stream. In 2024, initial franchise fees contributed a small fraction of the total revenue, with royalties and advertising making up the bulk. This may suggest that Browns Chicken relies more on ongoing royalties and advertising contributions from its franchisees than on initial fees.
It's also worth noting the difference in initial franchise fees collected between 2023 and 2024. In 2023, Browns Chicken collected $1,200 in initial franchise fees, which increased to $5,000 in 2024. This could be due to a variety of factors, such as an increase in the number of franchises sold, a change in the initial franchise fee amount, or a combination of both. A prospective franchisee may want to inquire about the reasons for this change to better understand the company's growth and franchise sales trends.
Understanding the revenue composition and the trends in initial franchise fees can help a potential franchisee assess the financial health and growth strategy of Browns Chicken. It also provides context for evaluating the initial investment required to start a franchise and the ongoing fees that will contribute to the franchisor's revenue.