What was the total distribution to members 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 to members in 2023 was $1,820,272. This figure represents the amount of money distributed to the members or owners of the LLC during that fiscal year. For a prospective franchisee, understanding these distributions can provide insight into the financial health and profitability of Chesters. It's also useful to compare this figure with the net income to see how much of the profit was distributed versus retained within the company.
In 2022, the distributions were $831,314, which is significantly lower than the 2023 amount. This increase in distributions could be due to higher profits in 2023 or a change in the distribution policy of Chesters. Reviewing several years of financial statements, if available, would give a better understanding of distribution trends.
It is important for a potential franchisee to investigate the reasons behind these distributions and understand how they might affect the company's future financial stability and growth. While distributions are a normal part of doing business, it's crucial to ensure that the company retains enough earnings to fund operations, growth, and handle unforeseen circumstances. A prospective franchisee should discuss these figures with Chesters and possibly a financial advisor to fully understand the implications.