What was the amount of distributions for Chesters in 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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CHESTER'S INTERNATIONAL, LLC STATEMENTS OF INCOME AND MEMBERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| SALES | $ 51,619,527 | $ 46,103,618 |
| COST OF SALES | 33,882,255 | 29,397,777 |
| GROSS PROFIT | 17,737,272 | 16,705,841 |
| SELLING AND ADMINISTRATIVE EXPENSES | 15,132,464 | 13,944,251 |
| OPERATING INCOME | 2,604,808 | 2,761,590 |
| OTHER INCOME (EXPENSE) | ||
| Interest income | 20,370 | 125 |
| Other income | 96,706 | 93,840 |
| Interest expense | (139,101) | (162,422) |
| Total other expense | (22,025) | (68,457) |
| NET INCOME | 2,582,783 | 2,693,133 |
| MEMBERS' EQUITY AT BEGINNING |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the total distributions for the year 2023 were $1,820,272. This figure represents the amount of money distributed to members or owners of the company during that fiscal year.
For a prospective franchisee, understanding the franchisor's distributions can provide insight into the financial health and profitability of the company. High distributions may indicate strong financial performance, but it's crucial to consider this in the context of other financial metrics, such as net income and overall equity. A potential franchisee should also look at the trend of distributions over several years to assess consistency and sustainability.
It's important to note that distributions are not necessarily indicative of the funds available for reinvestment in the business or support for franchisees. Therefore, prospective franchisees should inquire about Chesters's plans for future investments in technology, marketing, or franchisee support, and how these plans might be affected by the level of distributions. Additionally, understanding the criteria and decision-making process behind distributions can offer a clearer picture of the franchisor's financial strategy and its potential impact on the franchise system.