What was the total revenue from royalty fees for Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
NT OF OPERATIONS AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 2023
| Franchise fees | $ 12,542 | 4.3 % |
|---|---|---|
| Royalty fees | 244,959 | 84.8 |
| Other income | 31,274 | 10.8 |
| TOTAL REVENUES | 288,775 | 100.0 |
| OPERATING EXPENSES | ||
| Advertising | 10,175 | 3.5 |
| Amorization | 1,458 | 0.5 |
| Bank charges | 10 | - |
| Legal and accounting | 17,903 | 6.2 |
| License and fees | 1,388 | 0.5 |
| Management fees | 69,600 | 24.1 |
| Meals and entertainment | 7,574 | 2.6 |
| Office expense | 4,192 | 1.5 |
| Penalties | 137 | - |
| Telephone | 735 | 0.3 |
| Travel | 378 | 0.1 |
| TOTAL OPERATING EXPENSES | 113,550 | 39.3 |
| NET INCOME BEFORE TAXES | 175,225 | 60.7 |
| PROVISION FOR INCOME TAXES |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the total revenue from royalty fees for the year was $244,959, representing 84.8% of the company's total revenues. This indicates that royalty fees are the primary source of revenue for Burros Fries.
For a prospective franchisee, this information highlights the importance of sales and revenue generation at their individual Burros Fries location. Since a significant portion of the franchisor's income is derived from these royalties, franchisees can expect the franchisor to be highly invested in their success and operational efficiency.
It's also worth noting that franchise fees contributed a smaller portion of the total revenue, amounting to $12,542 or 4.3%. Other income accounted for $31,274, which is 10.8% of the total revenue. Understanding the breakdown of the franchisor's revenue streams can give potential franchisees insight into the financial dynamics of the Burros Fries franchise system.