What was the net income 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 net income for the year 2023 was $2,582,783. This figure represents the profit Chesters International, LLC retained after deducting all expenses, including the cost of sales, administrative expenses, interest, and other expenses, from its total sales of $51,619,527. This net income is a key indicator of the company's overall financial performance and profitability for that year.
In comparison, Chesters's net income for the year 2022 was $2,693,133, indicating a slight decrease in net income from 2022 to 2023. While sales increased from $46,103,618 in 2022 to $51,619,527 in 2023, the increase in the cost of sales and selling and administrative expenses impacted the net income. The cost of sales increased from $29,397,777 in 2022 to $33,882,255 in 2023, and selling and administrative expenses rose from $13,944,251 to $15,132,464 during the same period.
For a prospective franchisee, understanding Chesters's net income and its components provides insight into the financial health and operational efficiency of the franchisor. A consistent and healthy net income suggests that the franchisor is managing its expenses effectively and generating profits, which can be a positive sign for the stability and support that franchisees can expect. However, it is important to consider these figures in conjunction with other financial metrics and qualitative factors, such as market trends and brand reputation, to gain a comprehensive understanding of the franchise opportunity.
It is also worth noting that the FDD includes audited financial statements, indicating that these figures have been reviewed by an independent accounting firm (Warren Averett, LLC) and are presented fairly in accordance with accounting principles generally accepted in the United States of America. This adds a level of credibility to the financial information provided and can give prospective franchisees greater confidence in their investment decision.