What was the total amount of distributions 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 total distributions for 2022 were $831,314. This figure represents the amount of money distributed to the members or owners of Chesters International, LLC during that 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 important to consider this in the context of other financial metrics, such as net income and revenue growth. A potential franchisee should also look at the trend in distributions over several years to assess consistency.
It's also worth noting that distributions are distinct from net income. While net income represents the profit earned by the company, distributions are the actual funds distributed to the owners. In 2022, Chesters had a net income of $2,693,133 and distributed $831,314. Reviewing these figures helps potential franchisees understand how Chesters manages its profits and allocates capital. Comparing these figures year-over-year can reveal trends in profitability and distribution strategies, offering a more complete picture of the franchisor's financial management.