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What were the total advertising expenses for Chesters in 2024?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

expenses in the statements of income and members' equity.

Advertising Costs

Advertising costs are charged to operations when incurred. Advertising expense for

Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)

What This Means (2025 FDD)

According to Chesters's 2025 Franchise Disclosure Document, the company's advertising expenses for the year ending December 31, 2024, totaled $199,081. This figure represents the costs Chesters incurred for advertising and promotional activities during that fiscal year. For comparison, the advertising expenses for the year ending December 31, 2023, were $165,180.

For a prospective franchisee, understanding these advertising expenses is crucial. While these are the franchisor's expenses, they can provide insight into the brand's investment in marketing and promotion, which ultimately benefits franchisees by driving brand awareness and customer traffic. Franchisees often contribute to advertising funds, so knowing how the franchisor allocates these funds can inform their expectations and budgeting.

It's important to note that these figures reflect Chesters's advertising expenses as a whole and may not directly correlate with the advertising support a new franchisee receives in their specific location. Franchisees should inquire about the advertising strategies, marketing plans, and any required contributions to advertising funds during their due diligence process to fully understand the advertising support they can expect. Also, it is typical for franchise agreements to outline the percentage of revenue that franchisees must contribute to a marketing or advertising fund, which is used to promote the brand at the local, regional, or national level.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.