What was the cost of sales for the Lees Famous Recipe 'Springfield 207 407' location?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
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| - | - | (313,577) |
| Total other income (expenses), net | 1,909,672 | - | 253 | 9,132 | (2,088,387) | (169,330) | | Income (Loss) Before Income Taxes | (113,924) | 1,550,244 | 532,664 | 5,479 | (2,088,387) | (113,924) | | Income Tax Benefit | - | - | - | - | - | - | | Net Income (Loss) | $ (113,924) | $ 1,550,244 | $ 532,664 | $ 5,479 | $ (2,088,387) | $ (113,924) |
ARTEMIS RESTAURANT CORP. CONSOLIDATING STATEMENT OF OPERATIONS LEE'S 4-WALL, LLC YEAR ENDED DECEMBER 31, 2023
| LFRC Ocala | LFRC Lima | LFRC Springfield | LFRC Mt. Sterling | LFRC Ft. Wayne | LFRC Sanford | Elimination | Lee's 4-Wall, LLC Total | |
|---|---|---|---|---|---|---|---|---|
| Revenue: | ||||||||
| Sales by company-operated restaurants | $ 4,993,934 | $ 5,410,910 | $ 12,581,413 | $ 4,184,800 | $ 6,799,462 | $ 179,422 | $ - | $ 34,149,941 |
| Cost of Sales: | ||||||||
| Company-operated restaurant expenses - | ||||||||
| Food and paper | 1,895,194 | 2,040,125 | 4,949,389 | 1,692,530 | 2,736,196 | 55,217 | - | 13,368,651 |
| Payroll | 1,426,583 | 1,390,798 | 3,947,304 | 1,111,442 | 1,942,713 | 80,406 | - | 9,899,246 |
| Occupancy and other operating expenses | 618,442 | 6 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the cost of sales for the LFRC Springfield location totaled $10,427,004. This figure is comprised of several expense categories related to company-operated restaurant expenses. Specifically, food and paper costs amounted to $4,949,389, payroll expenses were $3,947,304, and occupancy and other operating expenses totaled $1,530,311.
These figures provide insight into the operational costs associated with running a Lees Famous Recipe restaurant. A prospective franchisee can use these numbers to understand the relative proportion of different expenses. For example, food and paper costs represent a significant portion of the total cost of sales, indicating the importance of efficient inventory management and supply chain logistics. Similarly, payroll expenses are also substantial, highlighting the need for effective staffing and labor cost control.
It is important to note that these costs are specific to the company-operated LFRC Springfield location and may not be directly applicable to a franchised location. Factors such as location, size, and operational efficiency can influence these expenses. However, this information serves as a valuable benchmark for potential franchisees to estimate their own potential costs and profitability. Franchisees should investigate how these costs may vary in their specific market and business circumstances.
Furthermore, the document also lists the revenue for the Springfield location as $12,581,413. This allows for the calculation of gross profit for that location, which is $2,154,409. This information, combined with the general and administrative expenses of $1,595,203, results in an operating income of $559,206 for the Springfield location. This comprehensive financial overview can assist potential franchisees in evaluating the overall financial performance of a company-operated store.