What were the total operating costs and expenses for Churchs Chicken in the later year presented in the table?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
553,375 | $ | 553,590 | | See accompanying notes | | | | |
| Revenues | _ | - | |
|---|---|---|---|
| Sales by company-operated restaurants | $ 168,865 | $ 156,268 | |
| Franchise revenue | 70,119 | 58,655 | |
| Rental and other income | 7,989 | 8,380 | |
| Total revenues | 246,973 | 223,303 | |
| Operating costs and expenses | |||
| Company-operated restaurant expenses: | |||
| Food, beverage and packaging | 50,697 | 48,155 | |
| Payroll and benefits | 46,151 | 42,744 | |
| Other operating expenses | 40,990 | 37,842 | |
| General and administrative expenses | 23,145 | 21,716 | |
| Depreciation and amortization | 21,831 | 19,924 | |
| Impairment, special charges and (gain) loss | |||
| on asset dispositions | 57 | 2,554 | |
| Total operating costs and expenses | 182,871 | 172,935 | |
| Operating income | 64,102 | 50,368 | |
| Interest expense, net | 28,643 | 28,140 | |
| Income before income taxes | 35,459 | 22,228 | |
| Income tax expense | 3,930 | 3,378 | |
| Net income | $ 31,529 | $ 18,850 | |
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 total operating costs and expenses for the year ended December 31, 2023, were $182,871. This figure encompasses various expenses related to company-operated restaurants, including food, beverage, and packaging, payroll and benefits, other operating expenses, general and administrative expenses, depreciation and amortization, and impairment, special charges and (gain) loss on asset dispositions.
For a prospective franchisee, understanding these operating costs is crucial for projecting profitability and managing their own restaurant's finances. These costs represent the resources Churchs Chicken spends to run its company-owned locations, and while a franchisee's costs may differ, this provides a benchmark. Factors such as location, local labor costs, and management efficiency can influence these expenses.
It's important to note that these figures reflect the costs for company-operated restaurants and may not directly translate to franchised locations. Franchisees should conduct thorough due diligence, create detailed business plans, and consult with financial advisors to accurately estimate their potential operating costs and expenses. Understanding these costs is essential for assessing the financial viability of a Churchs Chicken franchise.