What were the total selling and administrative expenses for Chesters International, LLC 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 selling and administrative expenses for Chester's International, LLC in 2022 were $13,944,251. This figure is part of the company's statements of income and members' equity for the years ending December 31, 2023, and 2022.
Selling and administrative expenses generally include costs related to marketing, sales staff salaries, administrative staff salaries, rent, utilities, and other general overhead costs. For a prospective Chesters franchisee, understanding this figure in relation to sales and gross profit can provide insight into the operational efficiency and cost management of the company. A consistent or decreasing trend in these expenses as a percentage of sales could indicate good management, while a rising trend might warrant further investigation.
It's important to note that these expenses reflect the costs incurred by Chester's International, LLC, the franchisor, and not the operating expenses of individual franchise locations. Franchisees will have their own set of operating expenses that they need to manage to ensure profitability. However, understanding the franchisor's financial performance can offer a degree of comfort and insight into the overall health and stability of the Chester's franchise system.
Furthermore, the FDD states that shipping and handling costs are included within selling and administrative expenses. Advertising expenses for 2022 totaled $278,273. Reviewing these figures in the context of overall financial performance can help potential franchisees assess how effectively Chesters manages its resources and supports its franchise network.