What were Chesters' total operating expenses 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 company's total operating expenses for 2023 are detailed in the financial statements. Specifically, the 'Selling and Administrative Expenses' line item reflects a significant portion of these costs.
In 2023, Chesters reported selling and administrative expenses of $15,132,464. This figure represents the costs associated with running the business, excluding the direct costs of goods sold. These expenses include items such as salaries, rent, utilities, marketing, and other general administrative costs necessary to support the franchise operations.
For a prospective franchisee, understanding these operating expenses is crucial. While this figure reflects Chesters's overall corporate expenses, it provides insight into the types and magnitude of costs a franchisee might encounter at their individual location. Reviewing these figures in comparison to revenues can help potential franchisees assess the financial health and efficiency of Chesters's operations.