What was the total revenue for Dickeys Barbecue Pit in the year ended May 31
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
its services as needed for its franchisee customers.
NOTE 9: REVENUE (Continued)
Disaggregated Revenue
Disaggregated revenue were as follows:
| For the years ended May 31, | 2024 | 2023 | 2022 |
|---|---|---|---|
| Operating income | |||
| Royalty fees | $ 10,668,869 | $ 12,200,173 | $ 13,370,451 |
| Gift card breakage fees | 313,067 | 370,504 | 626,507 |
| Vendor incentives | 3,652,786 | 4,976,475 | 5,676,532 |
| Other miscellaneous fees | 5,600,884 | 6,027,829 | 6,487,314 |
| Total operating income | 20,235,606 | 23,574,981 | 26,160,804 |
| Franchise fees | |||
| Pre-opening services | 525,975 | 525,975 | 1,555,310 |
| Franchise license fees | 669,974 | 287,771 | 464,441 |
| Total franchise fees | 1,195,949 | 813,746 | 2,019,751 |
| rotal framemoe rees | 2,233,313 | 013,710 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 95)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, the total revenue for the year ended May 31, 2024, was $28,282,519. The FDD also provides total revenue figures for the years ended May 31, 2023, and May 31, 2022, which were $32,326,609 and $37,392,920, respectively. This shows a decreasing trend in total revenue over the three-year period.
In addition to total revenue, the FDD breaks down revenue into several components. For the year ended May 31, 2024, these components include operating income ($20,235,606), franchise fees ($1,195,949), advertising income ($6,549,999), and other revenue ($300,965). A prospective franchisee can analyze these figures to understand the different sources of revenue for Dickeys Barbecue Pit.
It is important to note that while total revenue decreased from 2022 to 2024, the composition of revenue also shifted. For example, franchise fees were $2,019,751 in 2022 but decreased to $1,195,949 in 2024. Advertising income also decreased from $8,971,118 in 2022 to $6,549,999 in 2024. These changes could reflect shifts in Dickeys Barbecue Pit's business strategies or market conditions, which a potential franchisee should investigate further.