What was the total cost of sales 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 cost of sales for the company in 2023 was $33,882,255. This figure represents the direct costs attributable to the production and sale of Chesters's products and services for that year.
Understanding the cost of sales is crucial for prospective franchisees as it directly impacts the gross profit margin, which is the revenue less the cost of sales. A higher cost of sales can reduce the gross profit, affecting the overall profitability of a Chesters franchise. Monitoring this figure helps in assessing the efficiency of Chesters's supply chain and operational costs.
In comparison, the cost of sales in 2022 was $29,397,777, indicating an increase in the cost of sales for Chesters from 2022 to 2023. This increase should be further investigated by a potential franchisee to understand the reasons behind it, such as changes in raw material costs, supply chain disruptions, or increased production volume. Understanding these factors can help a franchisee better prepare for potential fluctuations in their own operating costs.