What was the interest expense 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 company's interest expense for the year 2023 was $139,101. This figure is part of the broader financial statement which includes sales, cost of sales, gross profit, selling and administrative expenses, and operating income, providing a comprehensive view of the company's financial performance.
For a prospective Chesters franchisee, understanding the franchisor's interest expense can offer insights into the company's debt management and overall financial health. A high-interest expense might indicate a significant debt burden, which could impact the franchisor's ability to support its franchisees or invest in the brand. Conversely, a lower interest expense could suggest better financial stability.
It's important to note that interest expense is just one component of the overall financial picture. A potential franchisee should review the entire financial statement, including revenue, expenses, and profit margins, to gain a complete understanding of Chesters's financial performance. Additionally, comparing these figures to previous years and industry benchmarks can provide valuable context.