What was the total amount of direct expenses for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
tockholder's equity | $ 1,454,272 |
Consolidated Statement of Operations For the Year Ended October 31, 2024
| Royalties | $ 980,131 |
|---|---|
| Company restaurant sales | 726,642 |
| Advertising fund revenues | 289,604 |
| Rebate revenue | 159,266 |
| Total revenues | 2,155,643 |
| Cost of company restaurant sales | |
| Food and beverage | 226,979 |
| Labor | 624,395 |
| Direct expenses | 191,618 |
| Total cost of company restaurant sales | 1,042,992 |
| Operating expenses | |
| Marketing and advertising | 237,855 |
| General and administrative | 735,475 |
| Total operating expenses | 973,330 |
| Income from operations | 139,321 |
| Other income (expense) | |
| Interest income | 35,160 |
| Interest expense | (4,108) |
| Other income | (39,824) |
| Loss on disposition of property and equipment | (123) |
| Total other in |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 FDD, Carbones Pizzeria's direct expenses can be found within the 'Cost of company restaurant sales' category. For the year ending October 31, 2024, the direct expenses totaled $191,618. In the previous year, ending October 31, 2023, direct expenses were $174,042. Looking back further, for the year ending October 31, 2022, the direct expenses amounted to $65,684.
These figures represent the direct expenses associated with the company-owned restaurant's sales. It is important to note that these expenses are specifically related to the corporate location and may not directly reflect the expenses a franchisee would incur. Direct expenses can include items such as utilities, maintenance, and other costs directly tied to the operation of the restaurant.
A prospective franchisee should consider these figures as a benchmark but should also conduct their own due diligence to estimate their potential direct expenses. Factors such as location, size of the restaurant, and local utility costs can significantly impact these expenses. Understanding these costs is crucial for developing a realistic financial projection for a Carbones Pizzeria franchise.
It is also worth noting that the FDD includes other expense categories such as 'Food and beverage' and 'Labor' within the 'Cost of company restaurant sales,' as well as 'Marketing and advertising' and 'General and administrative' under 'Operating expenses.' A franchisee should carefully review all these categories to understand the full scope of potential expenses involved in operating a Carbones Pizzeria franchise.