What was the total cost of sales for RC LF Sterling Heights Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
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| - | - | (313,577) |
| Total other income (expenses), net | 1,909,672 | - | 253 | 9,132 | (2,088,387) | (169,330) | | Income (Loss) Before Income Taxes | (113,924) | 1,550,244 | 532,664 | 5,479 | (2,088,387) | (113,924) | | Income Tax Benefit | - | - | - | - | - | - | | Net Income (Loss) | $ (113,924) | $ 1,550,244 | $ 532,664 | $ 5,479 | $ (2,088,387) | $ (113,924) |
ARTEMIS RESTAURANT CORP. CONSOLIDATING STATEMENT OF OPERATIONS LEE'S 4-WALL, LLC YEAR ENDED DECEMBER 31, 2023
| LFRC Ocala | LFRC Lima | LFRC Springfield | LFRC Mt. Sterling | LFRC Ft. Wayne | LFRC Sanford | Elimination | Lee's 4-Wall, LLC Total | |
|---|---|---|---|---|---|---|---|---|
| Revenue: | ||||||||
| Sales by company-operated restaurants | $ 4,993,934 | $ 5,410,910 | $ 12,581,413 | $ 4,184,800 | $ 6,799,462 | $ 179,422 | $ - | $ 34,149,941 |
| Cost of Sales: | ||||||||
| Company-operated restaurant expenses - | ||||||||
| Food and paper | 1,895,194 | 2,040,125 | 4,949,389 | 1,692,530 | 2,736,196 | 55,217 | - | 13,368,651 |
| Payroll | 1,426,583 | 1,390,798 | 3,947,304 | 1,111,442 | 1,942,713 | 80,406 | - | 9,899,246 |
| Occupancy and other operating expenses | 618,442 | 643,922 | 1,530,311 | 315,620 | 250,271 | 14,224 | 3,372,790 | |
| Total cost of sales | 3,940,219 | 4,074,845 | 10,427,004 | 3,119,592 | 4,929,180 | 149,847 | - | 26,640,687 |
| Gross profit | 1,053,715 | 1,336,065 | 2,154,409 | 1,065,208 | 1,870,282 | 29,575 | - | 7,509,254 |
| General and Administrative Expenses | 778,909 | 749,165 | 1,595,203 | 489,451 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided financial statements for Lee's Famous Recipe do not include specific data for "RC LF Sterling Heights." However, the document does provide detailed cost of sales information for several company-operated restaurants and related entities. These include LFRC Ocala, LFRC Lima, LFRC Springfield, LFRC Mt. Sterling, LFRC Ft. Wayne, and LFRC Sanford. The financial data includes revenue, cost of sales (broken down by food and paper, payroll, and occupancy), gross profit, general and administrative expenses, and operating income. This information is presented for both individual restaurant locations and consolidated totals. Also included are financial statements for Lee's Distribution, Lee's Franchisor, and Lee's 4-Wall, LLC. These statements provide a comprehensive overview of the revenue and expenses associated with various aspects of the Lee's Famous Recipe business, including proprietary product sales, royalties, and franchise fees. The total cost of sales for Lee's 4-Wall, LLC, which includes company-operated restaurants, is detailed, offering insight into the expenses associated with running these locations. For example, the total cost of sales for LFRC Ocala is $3,940,219. The total cost of sales for Lee's 4-Wall, LLC is $1,056,581. These figures include costs related to food and paper, payroll, and occupancy expenses. The document also includes consolidated financial statements, which provide an overview of the entire Lee's Famous Recipe Chicken, LLC.
To get the specific cost of sales for "RC LF Sterling Heights," a prospective franchisee should directly request this information from the franchisor. While the FDD provides financial statements for several company-owned locations, it does not include data for every single location. Requesting this specific data will provide a more accurate understanding of the potential costs and revenues associated with operating a Lee's Famous Recipe franchise in that particular market. This information is crucial for making an informed investment decision.
Understanding the cost of sales is essential for assessing the profitability and financial viability of a Lee's Famous Recipe franchise. By examining the detailed breakdown of expenses provided in the FDD for other locations, potential franchisees can gain insights into the types of costs they may incur and how these costs can impact their bottom line. However, it is important to remember that financial performance can vary significantly based on location, market conditions, and management practices. Therefore, obtaining specific financial data for the location of interest is highly recommended.