What was the net income for Chesters in 2022?
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 net income for the year 2022 was $2,693,133. This figure represents the profit Chesters retained after deducting all expenses, including the cost of sales, administrative expenses, interest, and other expenses, from its total sales revenue.
For a prospective franchisee, the net income of the franchisor can be an important indicator of the overall financial health and stability of the franchise system. A consistently profitable franchisor is more likely to have the resources to support its franchisees through training, marketing, and ongoing operational assistance. It also suggests that the franchisor's business model is sustainable and can generate profits even after covering all associated costs.
However, it is essential to consider this figure in conjunction with other financial metrics and qualitative factors. A potential franchisee should analyze Chesters's revenue trends, expense management, and overall financial performance over several years to gain a comprehensive understanding of the company's financial health. Additionally, it is advisable to compare Chesters's financial performance with that of other similar franchise systems in the quick-serve restaurant industry to assess its relative competitiveness and profitability.