What was the change in 'Accrued payroll and compensated absences' for Lees Famous Recipe in 2023?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
ember 31, 2023 | 19,887,331 | 1,989 | 11,998,011 | (594,697) | 11,405,303 | | Net loss | - | - | - | (45,658) | (45,658) | | Balance, December 31, 2024 | 19,887,331 | $ 1,989 | $ 11,998,011 | $ (640,355) | $ 11,359,645 |
ARTEMIS RESTAURANT CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Cash Flows from Operating Activities: | ||||
| Net income (loss) | $ (45,658) | $ 244,996 | $ (433,830) | |
| Adjustments to reconcile net income (loss) to net | ||||
| cash provided by operating activities: | ||||
| Depreciation and amortization | 3,902,066 | 2,994,576 | 2,943,406 | |
| Amortization of right of use asset in excess of rent paid | 338,343 | 55,708 | 53,057 | |
| Deferred income taxes | (167,000) | 136,000 | (88,000) | |
| Change in - | ||||
| Royalties receivable | 8,368 | 18,188 | (103,349) | |
| Proprietary product sales and allowances receivable | (256,040) | (412,895) | (823,305) | |
| Other receivables | 16,128 | (4,129) | 4,771 | |
| Inventory | 109,892 | (1,588) | (157,110) | |
| Prepaid expenses | (53,964) | 6,128 | 14,576 | |
| Other current assets | 15,840 | (32,544) | (27,915) | |
| Accounts payable | 931,067 | 605,538 | 199,390 | |
| Accrued payroll and compensated absences | 279,616 | 143,594 | 17,512 | |
| Taxes payable | 289,630 | 32,992 | 89,840 | |
| Deferred revenue | (68,834) | 115,548 | (70,755) | |
| Contingent consideration liability | 12,314 | - | - | |
| Net cash provided by operating activities | 5,311,768 | 3,902,112 | 1,618,288 | |
| Cash Flows from Investing Activities: | ||||
| Principal payments received on notes receivable | - | 1,898 | 10,509 | |
| Due from related party | (2,847) | - | 19,141 | |
| Purchase of property and equipment | (639,635) | (294,686) | (210,893) | |
| Net assets purchased in acquisition of LFRC Cynthiana | (375,000) | - | - | |
| Cash received in acquisition of LFRC St. Louis | 11,500 | - | - | |
| Net assets purchased in acquisition of LFRC St. Louis | (11,699,517) | - | - | |
| Cash received in acquisition of LFRC Ft. Wayne | - | 4,000 | - | |
| Net assets purchased in acquisition of LFRC Ft. Wayne | - | (467,000) | - | |
| Net assets purchased in acquisition of LFRC Ft. Wayne RE | - | (3,983,000) | - | |
| Cash received in acquisition of LFRC Sanford | - | 900 | - | |
| Net assets purchased in acquisition of LFRC Sanford | - | (291,210) | - | |
| Net assets purchased in acquisition of LFRC Sanford RE | - | (520,000) | - | |
| Net assets purchased in acquisition of LFRC Springfield | - | - | (8,517,599) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the 'Accrued payroll and compensated absences' changed in 2023. Specifically, in 2022, the accrued payroll and compensated absences were $17,512, and in 2023, they increased to $143,594. This represents an increase of $126,082 in accrued payroll and compensated absences from 2022 to 2023.
'Accrued payroll and compensated absences' typically represent wages, salaries, and benefits that Lees Famous Recipe has earned but not yet paid to its employees as of the end of the fiscal year. This can include accrued vacation time, sick leave, and bonuses. An increase in this liability could indicate that Lees Famous Recipe's employee compensation costs are rising, or that the company is accruing more employee benefits.
For a prospective franchisee, this information is useful in understanding the financial management and employee compensation practices of Lees Famous Recipe. While this data is from the parent company's financial statements, it can provide insight into potential labor costs and how the brand manages its employee obligations. Franchisees should inquire about how these figures might translate to their own operations and what factors could influence their payroll and compensation expenses.