What were the total direct expenses 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 | 46,1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the total direct expenses for the company in 2023 were $388,839, representing 50.61% of total revenue. This figure includes several specific expense categories.
Specifically, Browns Chicken's direct expenses included $165,302 in advertising and promotions (21.51%), $510 in employee benefits (0.07%), $13,499 in franchising expenses (1.76%), $15,721 in payroll taxes (2.05%), and $193,807 in salaries (25.22%). These individual expenses contribute to the overall cost of running the Browns Chicken franchise system.
Understanding the breakdown of these expenses is crucial for prospective franchisees. It provides insight into where Browns Chicken is allocating its resources and what areas contribute most significantly to its direct costs. This information can be helpful in evaluating the financial health and operational efficiency of the franchise system.
For comparison, the 2022 total direct expenses were $353,548, which was 44.79% of total revenue. This shows an increase in total direct expenses from 2022 to 2023. Franchisees should analyze these trends to understand how expenses are evolving and what factors might be influencing these changes.