What was the operating income (loss) for Lees Famous Recipe in 2021?
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 the 2025 FDD, the operating income (loss) for Lee's Famous Recipe in 2021 was a loss of $368,533. This figure represents the company's earnings before considering other income, expenses, interest, and taxes. It is calculated by subtracting the total cost of sales and general and administrative expenses from the gross profit.
For a prospective franchisee, this indicates the overall profitability of Lee's Famous Recipe's operations during that year. A negative operating income suggests that the company's core business activities were not generating enough revenue to cover its expenses. This could be due to a variety of factors, such as high operating costs, low sales volume, or a combination of both.
It's important to note that this figure represents the consolidated results of Lee's Famous Recipe as a whole, and the performance of individual franchise locations may vary. A prospective franchisee should investigate further to understand the factors that contributed to this loss and whether the company has taken steps to improve its operating income in subsequent years. Reviewing more recent financial statements and discussing the company's financial performance with current franchisees can provide valuable insights.