What were the total general and administrative expenses for Lees Famous Recipe in 2022?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amortization | $ 477,915 | $ | 363,146 | $ | 11,944 | ||
|---|---|---|---|---|---|---|---|
| Bank and transaction fees | 1,191,459 | 615,118 | 53,236 | ||||
| Depreciation | 367,511 | 250,573 | 21,397 | ||||
| Information technology | 181,234 | 105,268 | 5,389 | ||||
| Management services | 299,312 | 151,435 | 9,058 | ||||
| Marketing | 1,037,469 | 545,858 | 6,828 | ||||
| Office | 301,716 | 199,107 | 10,274 | ||||
| Other expense | 41,418 | (4,090) | 602 | ||||
| Operating and administration | 330,842 | 308,937 | 13,372 | ||||
| Payroll | 21,331 | 30,950 | 275,434 | ||||
| Professional fees | 51,137 | 63,762 | 35,115 | ||||
| Taxes | 189,493 | 124,090 | 12,525 | ||||
| Total General and Administrative Expenses | $ 4,490,837 | $ | 2,754,154 | $ | 455,174 |
ARTEMIS RESTAURANT CORP.
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 Lee's Famous Recipe in 2022 were $312,880. This figure includes depreciation expenses of $190,362 and professional fees of $122,518. There were also other expenses of $881.
General and administrative (G&A) expenses typically include costs associated with managing the business, such as salaries for administrative staff, rent for office space, utilities, and other overhead costs. For a prospective franchisee, understanding the G&A expenses can provide insight into the operational efficiency and cost management of the franchisor. Lower G&A expenses may indicate better cost control, which could translate to a more profitable franchise system.
It's important to note that these figures represent expenses at the corporate level and may not directly reflect the operating expenses a franchisee will incur. However, they can offer a benchmark for evaluating the franchisor's financial management. A potential franchisee should compare these expenses with industry averages and consider how the franchisor's G&A expenses might impact the support and services provided to franchisees.