What was the reported payroll and benefits expense for Churchs Chicken as of December 25, 2022?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 553,590 | $ | 549,301 | | | | See accommunity nates | | | | | | |
| Dec | cember 31, | De | cember 25, | |
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues | ||||
| Sales by company-operated restaurants | S | 156,268 | S | 141,936 |
| Franchise revenue | 58,655 | 54,276 | ||
| Rental and other income | 8,380 | 8,781 | ||
| Total revenues | 223,303 | 204,993 | ||
| Operating costs and expenses | ||||
| Company-operated restaurant expenses: | ||||
| Food, beverage and packaging | 48,155 | 45,690 | ||
| Payroll and benefits | 42,744 | 40,009 | ||
| Other operating expenses | 37,842 | 37,204 | ||
| General and administrative expenses | 21,716 | 22,378 | ||
| Depreciation and amortization | 19,924 | 18,600 | ||
| Impairment, special charges and (gain) loss on asset dispositions | 2,554 | (954) | ||
| Total operating costs and expenses | 172,935 | 162,927 | ||
| Operating income | 50,368 | 42,066 | ||
| Interest expense, net | 28,140 | 26,861 | ||
| Income before income taxes | 22,22 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the company-operated restaurant expenses for payroll and benefits as of December 25, 2022, were $40,009. This figure represents the total cost incurred by Churchs Chicken for employee compensation and benefits at its company-owned locations during that fiscal year.
For a prospective franchisee, understanding this expense is crucial as it provides insight into the operational costs associated with running a Churchs Chicken restaurant. While this figure pertains to company-operated restaurants, it can serve as a benchmark for estimating payroll and benefits expenses in a franchised location. However, franchisees should recognize that their actual costs may vary based on factors such as location, staffing levels, local wage laws, and benefit packages offered.
It's important to note that this figure only reflects the expenses of company-operated restaurants and may not directly translate to the costs a franchisee will incur. Franchisees should conduct their own due diligence, including creating detailed financial projections and consulting with existing franchisees, to estimate their potential payroll and benefits expenses accurately. Understanding these costs is essential for assessing the financial viability of a Churchs Chicken franchise and ensuring profitability.