What was the operating loss for Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
Before Income Taxes | (291,4: | 53) | 3,058,094 | | 1,888,349 | | 42,571 | | 2,284,639 | | (326,572) | | (6,960,138) | | (304,510) | | Income Tax Benefit | | | | | - | | | | (141) | _ | | | | | (141) | | Net Income (Loss) | $ (291,4 | 53) $ | 3,058,094 | $ | 1,888,349 | $ | 42,571 | $ | 2,284,498 | $ | (326,572) | $ | (6,960,138) | $ | (304,651) |
ARTEMIS RESTAURANT CORP. CONSOLIDATING STATEMENT OF OPERATIONS LFR CHICKEN, LLC FROM MAY 6, 2021 (INCEPTION) TO DECEMBER 31, 2021
| 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 consolidated financial statements for LFR Chicken, LLC show an operating loss for certain entities within the Lees Famous Recipe system. Specifically, LFR Chicken experienced an operating loss of $2,023,596, while Lee's 4-Wall LLC had an operating loss of $3,653. However, other entities such as Lee's Distribution and Lee's Franchisor showed operating income of $1,550,244 and $532,411 respectively. The total operating income for LFR Chicken, LLC was $55,406.
Prospective franchisees should note that these figures reflect the performance of specific company-owned entities and the overall consolidated results, not necessarily the performance of a typical franchised location. The financial performance of individual franchise locations can vary widely based on factors such as location, management, and local market conditions. These figures provide a view into the financial performance of different segments within the Lees Famous Recipe corporate structure.
It is important for potential franchisees to carefully review the complete financial statements and consult with a financial advisor to understand the implications of these figures. While some entities within the Lees Famous Recipe system experienced operating losses, others were profitable, and the overall impact on the consolidated entity was an operating income. Understanding these nuances is crucial for making an informed investment decision.