What was the net loss for Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Revenue: | LFR Chicken | Lee's Distribution | Lee's Franchisor | Lee's 4-Wall LLC | Elimination | LFR Chicken, LLC Total |
|---|---|---|---|---|---|---|
| Proprietary product revenue | $ 307,210 | $ 6,070,247 | $ - | $ - | $ - | $ 6,377,457 |
| Royalties | - | - | 540,737 | - | - | 540,737 |
| Franchise, license, and development fees | - | - | 7,500 | - | - | 7,500 |
| Sales by company-operated restaurants | - | - | - | 1,508,102 | - | 1,508,102 |
| Total revenue | 307,210 | 6,070,247 | 548,237 | 1,508,102 | - | 8,433,796 |
| Cost of Sales: | ||||||
| Proprietary products | 4,368 | 4,518,874 | - | - | - | 4,523,242 |
| Company-operated restaurant expenses - | ||||||
| Food and paper | - | - | - | 554,031 | - | 554,031 |
| Payroll | - | - | - | 425,501 | - | 425,501 |
| Occupancy and other operating expenses | - | - | - | 77,049 | - | 77,049 |
| Total cost of sales | 4,368 | 4,518,874 | - | 1,056,581 | - | 5,579,823 |
| Gross profit | 302,842 | 1,551,373 | 548,237 | 451,521 | - | 2,853,973 |
| General and Administrative Expenses | 2,326,438 | 1,129 | 15,826 | 455,174 | - | 2,798,567 |
| Operating income (loss) | (2,023,596) | 1,550,244 | 532,411 | (3,653) | - | 55,406 |
| Other Income (Expenses): | ||||||
| Administrative service income | 102,890 | - | - | - | - | 102,890 |
| Earnings in subsidiaries | 2,088,387 | - | - | - | (2,088 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, the net loss for LFR Chicken, LLC was $113,924. However, the net incomes for Lee's Distribution and Lee's Franchisor were $1,550,244 and $532,664, respectively. Lee's 4-Wall LLC had a net income of $5,479. There was also an elimination of $2,088,387.
It is important to note that these figures represent the net income (loss) for specific entities within the Lees Famous Recipe corporate structure, not necessarily the overall net loss for the entire franchise system. The "elimination" entry suggests internal accounting adjustments between the related companies.
A prospective franchisee should consult the full financial statements and discuss these figures with Lees Famous Recipe to understand the overall financial performance of the company and how it might impact their investment.