What was the advertising and promotion expense for Big Apple Bagels in 2023?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenues | ||||
| Royalty fees from franchised stores | $ 1,994,814 | $ 1,944,894 | $ 1,838,276 | |
| Franchise fees and other | 160,133 | 98,773 | 97,626 | |
| Marketing fund revenue | 1,176,663 | 1,243,890 | 1,081,320 | |
| Total Revenues | 3,331,610 | 3,287,557 | 3,017,222 | |
| Operating Costs and Expenses | ||||
| License fee | 603,385 | 572,227 | 540,564 | |
| Payroll and related expenses | 601,402 | 536,846 | 471,779 | |
| Professional service fees | 70,367 | 60,934 | 59,380 | |
| Advertising and promotion expense | 1,903 | 12,186 | 14,801 | |
| Franchise-related expenses | 10,893 | 4,515 | 17,771 | |
| Travel | 16,514 | 23,331 | 16,332 | |
| Bad debt expense (recoveries) | 22,355 | 18,081 | (3,005) | |
| Depreciation and amortization | - | - | 749 | |
| Occupancy | 67,589 | 68,263 | 65,548 | |
| Insurance expense | 25,320 | 27,649 | 30,789 | |
| Employee benefit expense | 87,604 | 72,539 | 76,249 | |
| Loss on sales-type lease termination | 11,659 | - | - | |
| Other | 34,253 | 36,628 | 47,099 | |
| Marketing fund expense | 1,176,663 | 1,243,890 | 1,081,320 | |
| Total Operating Costs and Expenses | 2,729,907 | 2,677,089 | 2,419,376 | |
| Income from Operations | 601,703 | 610,468 | 597,846 | |
| Interest Income | 2,074 | 456 | 412 | |
| Income before Income Taxes | 603,777 | 610,924 | 598,258 | |
| Provision/(Benefit) for Income Taxes | ||||
| Current | 165,857 | 158,549 | 92,341 | |
| Deferred | 4,150 | 19,448 | 75,966 | |
| Total Tax Provision | 170,007 | 177,997 | 168,307 | |
| Net Income | 433,770 | 432,927 | 429,951 | |
| Retained Earnings, Beginning of Year | 8,859,801 | 8,426,874 | 7,996,923 | |
| Retained Earnings, End of Year (Exhibit A) | $ 9,293,571 | $ 8,859,801 | $ 8,426,874 |
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the advertising and promotion expense for the company in 2023 was $12,186. This figure reflects the costs Big Apple Bagels incurred for advertising and promotional activities across all of its franchise operations during that year.
For a prospective franchisee, this number provides insight into the level of investment Big Apple Bagels makes in marketing and advertising at the corporate level. It is important to note that this figure does not represent the advertising expenses that individual franchisees might incur at the local level. Franchisees are typically required to contribute to a marketing fund, and they may also conduct their own local advertising campaigns.
Understanding the franchisor's advertising and promotion expense can help a franchisee assess the brand's marketing strategy and the support they can expect in terms of brand awareness and customer acquisition. However, it is crucial for potential franchisees to also inquire about the details of the marketing fund, including contribution rates, how the funds are used, and the extent of local advertising requirements, to get a complete picture of the overall advertising landscape.