What was the total general and administrative expense 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 | - | - | - | (2,088,387) | - |
| Miscellaneous income | 31,972 | - | 253 | 9,132 | - | 41,357 |
| Interest expense | (313,577) | - | - | - | - | (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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, the total general and administrative expenses for LFR Chicken, LLC was $2,798,567. This figure consolidates the general and administrative expenses across several entities, including LFR Chicken ($2,326,438), Lee's Distribution ($1,129), Lee's Franchisor ($15,826), and Lee's 4-Wall LLC ($455,174).
Additionally, the FDD provides a breakdown of general and administrative expenses for individual company-operated restaurants under Lee's 4-Wall LLC. For instance, LFRC Ocala had general and administrative expenses of $778,909, LFRC Lima had $749,165, LFRC Springfield had $1,595,203, LFRC Mt. Sterling had $489,451, LFRC Ft. Wayne had $850,314 and LFRC Sanford had $27,795. The total general and administrative expenses for Lee's 4-Wall LLC was $4,490,837.
For a prospective franchisee, understanding these expenses is crucial as it provides insight into the overhead costs associated with running the Lees Famous Recipe business. While franchisees will have their own general and administrative costs, this information offers a benchmark for comparison and helps in financial planning. It's important to note that these figures represent the expenses of the parent company and its affiliates, not necessarily the costs a franchisee would incur, but it can be indicative of the scale of corporate operations and support.