What was the total amount of franchise fees Chesters collected in 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
, are distinct from the ongoing services provided to franchisees. Additionally, under ASU 2021-02, upfront franchise fees are recognized upon opening of the franchise. Franchise fees for th
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the franchise fees collected for the year ended December 31, 2023, amounted to $286,274. This figure is included in the sales reported in the accompanying statements of income and members' equity. Franchise fees for the year ended December 31, 2022, were $254,500.
For a prospective Chesters franchisee, this indicates the revenue Chesters generates specifically from franchise fees, separate from product sales or other revenue streams. Understanding the different revenue streams can provide insight into the financial health and stability of the franchisor.
It's important to note that these franchise fees are upfront fees paid upon the opening of a store. These fees are typically billed and paid when a new franchise agreement becomes effective. The FDD states that Chesters recognizes these fees upon the opening of the franchise, and they are distinct from ongoing services provided to franchisees.