What was the total interest 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, the interest expense for LFR Chicken was ($313,577). The FDD also includes a table that breaks down revenue and expenses for LFRC Ocala, LFRC Lima, Elimination, and Lee's 4-Wall, LLC. Under the category "Other Income (Expenses)" the interest expense for each of these entities is listed as zero.
This means that LFR Chicken, LLC, as a whole, incurred a significant interest expense, while the individual entities listed in the table did not have any interest expenses. A prospective franchisee should consider the overall financial health of LFR Chicken, LLC, as it could impact the support and resources available to franchisees.
It is important to note that the interest expense is listed as a negative number, which is standard accounting practice for expenses. This indicates that it is a cost incurred by the company. A potential franchisee should inquire about the nature of this interest expense and how it might affect the company's profitability and ability to support its franchisees.