What was the total revenue for Browns Chicken as of December 31, 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 | - | - |
| Adv |
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 the company as of December 31, 2023, was $768,366. This revenue is comprised of several sources, including royalties, initial franchise fees, advertising revenue, and vendor promotional allowances. Royalties accounted for the largest portion of the revenue, totaling $403,743, while initial franchise fees contributed the smallest amount, at $1,200. Advertising revenue was also a significant contributor, amounting to $357,273, and vendor promo allowance added $6,150 to the total.
When evaluating this information, a prospective Browns Chicken franchisee should consider how these revenue streams might impact their own franchise's financial performance. For example, the franchisee will likely pay royalties and contribute to advertising, so understanding the franchisor's revenue model is essential. Additionally, the franchisee should investigate how vendor promo allowances are earned and distributed, as this could represent an additional income opportunity.
It's also worth noting that the total revenue for Browns Chicken in 2023 was slightly higher than in 2024, when it totaled $720,041. This decrease could be due to various factors, such as changes in the number of franchisees, shifts in consumer demand, or adjustments to the company's revenue model. A prospective franchisee should inquire about the reasons for this change and how Browns Chicken plans to address any potential challenges in the future.