What was the total cost of sales for RC LF Ocala Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
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ARTEMIS RESTAURANT CORP. CONSOLIDATING STATEMENT OF OPERATIONS LEE'S 4-WALL, LLC FROM MAY 6, 2021 (INCEPTION) TO DECEMBER 31, 2021
| LFRC Ocala | LFRC Lima | Elimination | Lee's 4-Wall, LLC Total | |
|---|---|---|---|---|
| Revenue: | ||||
| Sales by company-operated restaurants | $ 452,994 | $ 1,055,108 | $ - | $ 1,508,102 |
| Cost of Sales: | ||||
| Company-operated restaurant expenses - | ||||
| Food and paper | 168,729 | 385,302 | - | 554,031 |
| Payroll | 125,602 | 299,899 | - | 425,501 |
| Occupancy and other operating expenses | 22,657 | 54,392 | - | 77,049 |
| Total cost of sales | 316,988 | 739,593 | - | 1,056,581 |
| Gross profit | 136,006 | 315,515 | - | 451,521 |
| General and Administrative Expenses | 8 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the total cost of sales for LFRC Ocala was $316,988. This figure is part of the financial performance data for company-operated restaurants. The cost of sales includes expenses related to food and paper ($168,729), payroll ($125,602), and occupancy and other operating expenses ($22,657).
For a prospective franchisee, understanding the cost of sales is crucial as it directly impacts the profitability of the restaurant. The cost of sales, when subtracted from revenue, determines the gross profit, which in the case of LFRC Ocala, was $136,006. This gross profit must then cover general and administrative expenses to determine the operating income.
It's important to note that LFRC Ocala's operating income was $51,018, which indicates that this particular company-operated restaurant was profitable. However, financial performance can vary significantly between locations, so a franchisee should not assume that their restaurant will achieve the same results. Factors such as location, management, and local market conditions can all influence financial outcomes.
Prospective franchisees should carefully analyze these financial statements and consider conducting their own due diligence, including speaking with existing franchisees, to gain a comprehensive understanding of the potential costs and revenues associated with operating a Lees Famous Recipe franchise.