What was the advertising and promotion expense for Big Apple Bagels in 2024?
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 |
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 2024 was $1,903. This figure reflects the direct costs incurred by Big Apple Bagels for advertising and promotional activities at the corporate level.
For a prospective franchisee, this number provides insight into the franchisor's investment in marketing and brand promotion. However, it's important to note that this figure does not represent the total advertising expenditure for the entire Big Apple Bagels franchise system, as it excludes any local advertising franchisees may conduct independently or through regional marketing funds.
A potential franchisee should inquire about the structure of the marketing program, including whether there are mandatory contributions to a marketing fund, and how those funds are used at the local and national levels. Understanding the full scope of advertising and promotional efforts is crucial for assessing the potential brand support a franchisee can expect.