What was the net income (loss) for Lees Famous Recipe in 2022?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
pital | 11,998,011 | 11,998,011 | | Accumulated deficit | (594,697) | (839,693) | | Total stockholders' equity | 11,405,303 | 11,160,307 | | | | | | Total Liabilities and Stockholders' Equity | $ 48,801,487 | $ 48,083,792 |
ARTEMIS RESTAURANT CORP. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS AND PERIOD ENDED DECEMBER 31, 2023, 2022 AND 2021
From the period from May 6, 2021 (inception) to December 31,
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Revenue: | |||
| Proprietary product revenue | $ 15,065,201 | $ 13,297,773 | $ 6,377,457 |
| Royalties | 1,191,981 | 1,081,966 | 540,737 |
| Franchise, license, and development fees | 67,273 | 174,335 | 7,500 |
| Sales by company-operated restaurants | 34,149,941 | 21,625,752 | 1,508,102 |
| Total revenue | 50,474,396 | 36,179,826 | 8,433,796 |
| Cost of Sales: | |||
| Proprietary products | 10,942,167 | 9,661,670 | 4,523,242 |
| Company-operated restaurant expenses - | |||
| Food and paper | 13,368,651 | 8,680,056 | 554,031 |
| Payroll | 9,899,246 | 6,136,297 | 425,501 |
| Occupancy and other operating expenses | 1,663,577 | 1,105,550 | 77,049 |
| Total cost of sales | 35,873,641 | 25,583,573 | 5,579,823 |
| Gross profit | 14,600,755 | 10,596,253 | 2,853,973 |
| General and Administrative Expenses | 11,708,829 | 9,679,419 | 3,222,506 |
| Operating income (loss) | 2,891,926 | 916,834 | (368,533) |
| Other Income (Expenses): | |||
| Administrative service inco |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the net income (loss) for the company in 2022 was a loss of $433,830. This figure represents the consolidated net income (loss) for Artemis Restaurant Corp., which includes LFR Chicken, LLC and its seventeen wholly-owned subsidiaries.
For a prospective franchisee, this historical net loss may raise concerns about the financial health and stability of Lees Famous Recipe. It's important to consider this figure in the context of the company's overall financial performance, including revenues, expenses, and other income/expenses, as well as any factors that may have contributed to the loss in 2022. Reviewing subsequent years' financial statements is also crucial to determine if the company has improved its profitability.
It is also important to note that the net income (loss) reflects the performance of the entire consolidated entity, including both franchised and company-operated locations, as well as other related businesses such as distribution. Therefore, the net income (loss) may not directly reflect the financial performance of individual franchise units. A prospective franchisee should inquire about the financial performance of existing franchise locations to gain a better understanding of the potential profitability of a Lees Famous Recipe franchise.
Given this information, a potential franchisee should investigate the reasons behind the net loss in 2022 and assess whether the factors contributing to the loss are likely to persist or have been addressed. Understanding the franchisor's financial performance is a critical part of the due diligence process before investing in a franchise.