What was the interest expense for Lees Famous Recipe for LFR Chicken?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Administrative service income | 102,890 | - | - | - | - | 102,890 |
|---|---|---|---|---|---|---|
| Earnings in subsidiaries | 2,088,387 | - | - | - | (2,088,387) | - |
| Miscellaneous income | 31,972 | - | 253 | 9,132 | - | 41,357 |
| Interest expense | (313,577) | - | - | - | - | (313,577) |
| Total other income (expenses), net | 1,909,672 | - | 253 | 9,132 | (2,088,387) | (169,330) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, LFR Chicken's interest expense was ($313,577). This figure represents the cost incurred by LFR Chicken for its debt financing during the specified period.
For a prospective Lees Famous Recipe franchisee, understanding the interest expenses of related entities like LFR Chicken can provide insight into the financial leverage and debt management strategies within the Lees Famous Recipe organization. While the franchisee's own interest expenses will depend on their individual financing arrangements, this information offers a benchmark for assessing the financial health and capital structure of the broader Lees Famous Recipe network.
It's important to note that this interest expense is specific to LFR Chicken and may not directly reflect the financial obligations a new franchisee will face. Factors such as loan terms, interest rates, and the amount of capital borrowed can significantly impact a franchisee's interest expenses. Therefore, prospective franchisees should conduct their own financial analysis and consult with financial advisors to determine their specific financial obligations and assess the affordability of investing in a Lees Famous Recipe franchise.