What was the total sales revenue for Chesters International, LLC in 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
ITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**
| 2024 | 2023 | |
|---|---|---|
| REVENUES: | ||
| Product sales | $ 27,865,394 | $ 44,962,498 |
| Other revenue | 12,246,716 | 6,370,755 |
| Franchise fees | 246,000 | 286,274 |
| 40,358,110 | 51,619,527 | |
| OPERATING EXPENSES: | ||
| Cost of product sales | 21,752,259 | 33,882,255 |
| Advertising expenses | 199,081 | 165,180 |
| Selling, general and administrative expenses | 15,340,272 | 14,504,501 |
| Depreciation and amortization | 522,927 | 462,783 |
| 37,814,539 | 49,014,719 | |
| OPERATING INCOME | 2,543,571 | 2,604,808 |
| OTHER INCOME (EXPENSE) | ||
| Loss on distributor agreement termination | (2,514,311) | - |
| Interest income | 92,633 | 20,370 |
| Other (expense) income | (10,032) | 96,706 |
| Interest expense | (181,560) | (139,101) |
| Total other expense | (2,613,270) | (22,025) |
| NET INCOME | (69,699) | 2,582,783 |
| MEMBERS' EQUITY AT BEGINNING OF YEAR | 4,861,345 | 4,098,834 |
| DISTRIBUTIONS | (2,743,252) | (1,820,272) |
| MEMBERS' |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the total revenue for Chesters International, LLC in 2023 was $51,619,527. This figure is the sum of product sales ($44,962,498), other revenue ($6,370,755), and franchise fees ($286,274). This information is derived from the company's statements of income and members' equity for the years ended December 31, 2024 and 2023.
For a prospective Chesters franchisee, understanding the franchisor's revenue streams is crucial. It provides insight into how the company generates income, whether primarily through product sales to franchisees, franchise fees, or other avenues. A significant portion of Chesters' revenue comes from product sales, indicating the importance of the supply chain and distribution aspects of the franchise system. The franchise fees contribute a smaller, though still significant, portion of the overall revenue.
It's important to note that while this figure represents the total revenue for Chesters International, LLC, it does not reflect the revenue of individual franchise locations. A potential franchisee would need to review Item 19 of the FDD or speak with existing franchisees to understand the revenue potential of a Chesters franchise location. Additionally, the FDD includes audited financial statements, offering a degree of assurance regarding the accuracy of the reported figures.
Analyzing the trend in revenue from 2023 to 2024, as presented in the table, shows a decrease in product sales and an increase in other revenue. This shift could be due to changes in the company's business model, such as the transition to third-party management of procurement and distribution, as mentioned elsewhere in the FDD. Prospective franchisees should inquire about the reasons for these changes and their potential impact on franchise operations and profitability.