What were the total advertising costs charged to operations for Buona for the year ended January 1, 2023?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Deferred Revenue, less Current Portion | | | | TOTAL LONG-TERM LIABILITIES | 211,917 | 58,917 | | TOTAL LIABILITIES | 381,469 | 104,941 | | MEMBERS' EQUITY (DEFICIT) Members' Equity (Deficit) Members' Contributions | (122,239) - | (19,123) 25,000 | | TOTAL MEMBERS' EQUITY (DEFICIT) | (122,239) | 5,877 | | TOTAL LIABILITIES AND MEMBERS' EQUITY (DEFICIT) | $ 259,230 | $ 110,818 |
FOR THE FISCAL YEARS ENDED STATEMENTS OF OPERATIONS CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING LLC DECEMBER 31, 2023 AND JANUARY 1, 2023
| 2023 | 2022 | |
|---|---|---|
| REV |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the advertising expenses charged to operations for the year ended January 1, 2023, were $15,709. This figure reflects the costs Buona incurred for advertising activities during that fiscal year.
Understanding advertising expenses is crucial for potential franchisees as it provides insight into the franchisor's investment in marketing and brand promotion. These expenses can impact brand awareness and customer traffic, ultimately affecting a franchisee's sales and profitability.
It's important to note that this figure represents advertising expenses at the corporate level and does not include the local advertising franchisees are required to conduct. Franchisees are required to spend a minimum of one percent of gross sales on local advertising, in addition to contributing to the marketing fund. This combined investment in advertising is intended to support both the Buona brand and the franchisee's individual location.