What was the total amount of distributions 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 total distributions for the company in 2023 were $1,820,272. This figure represents the amount of money distributed to the members or owners of Chesters International, LLC during that fiscal year. It is important to note that distributions can fluctuate from year to year based on the company's financial performance and decisions regarding profit allocation. In 2022, Chesters's distributions totaled $831,314.
For a prospective franchisee, understanding the franchisor's distribution history can provide insights into the financial stability and profitability of the company. While distributions don't directly impact a franchisee's operations, they reflect the overall financial health of Chesters. A consistent history of distributions may indicate a well-managed and profitable franchise system.
However, it's crucial to consider distributions in conjunction with other financial metrics, such as revenue, net income, and member's equity. A sudden decrease in distributions, as seen when comparing 2023 to 2024, could signal potential financial challenges or a strategic shift in how Chesters allocates its profits. Therefore, prospective franchisees should conduct thorough due diligence and seek professional financial advice to assess the implications of Chesters's financial performance on their investment.