What was the total distribution to members 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 to members in 2022 was $831,314. This figure represents the amount of money Chesters distributed to its members during that fiscal year.
For a prospective franchisee, understanding the distributions to members can provide insight into the financial health and profitability of Chesters. While franchisees do not directly receive these distributions, the franchisor's ability to distribute funds to its members suggests a stable financial position. This can be an important factor when evaluating the overall strength and sustainability of the franchise system.
It's important to note that distributions to members are not necessarily indicative of the profits available to franchisees. Franchisee profitability depends on various factors, including location, operating costs, and the franchisee's management skills. However, a financially stable franchisor is better positioned to support its franchisees through marketing, training, and other resources, which can indirectly contribute to franchisee success.
When considering a Chesters franchise, prospective franchisees should review the complete financial statements in Item 21 of the FDD and consult with a financial advisor to assess the franchisor's financial performance and its potential impact on their investment.