What was the total revenue 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the total revenue for 2023 was $768,366. This revenue is comprised of several sources, with the largest portions coming from royalties and advertising. Royalties accounted for $403,743, representing 52.54% of the total revenue. Advertising contributed $357,273, which is 46.50% of the total. Other sources of revenue include initial franchise fees, which amounted to $1,200 (0.16%), and vendor promo allowance, contributing $6,150 (0.80%).
Understanding the composition of Browns Chicken's revenue streams is important for prospective franchisees. The significant contribution from royalties indicates the ongoing fees paid by franchisees based on their sales, highlighting the importance of franchisee performance to the franchisor's revenue. The substantial revenue from advertising suggests a strong emphasis on marketing and brand promotion, which benefits all franchisees. The smaller amounts from initial franchise fees and vendor promo allowances are less significant but still contribute to the overall financial picture.
Reviewing these figures in the context of Browns Chicken's expenses provides a more complete financial picture. In 2023, Browns Chicken had direct expenses totaling $388,839, resulting in a gross profit of $379,527. Selling, general, and administrative expenses amounted to $287,223, leading to net earnings for the year of $92,304. These figures help to illustrate the profitability of Browns Chicken and how revenue translates into earnings after accounting for various expenses.
Prospective franchisees should consider these revenue and expense figures in conjunction with other sections of the FDD, such as Item 19 (Financial Performance Representations), to gain a comprehensive understanding of the potential financial performance of a Browns Chicken franchise. It is also advisable to discuss these figures with existing franchisees and a financial advisor to assess the risks and opportunities associated with investing in a Browns Chicken franchise.