What was the amount of advances to affiliates (net of repayments) for Big Apple Bagels in 2022?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended November 30, 2024, 2023 and 2022 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Operating Activities | ||||
| Net Income | $ 433,770 | $ 432,927 | $ 429,951 | |
| Adjustments to reconcile net income to cash | ||||
| flows provided by operating activities: | ||||
| Depreciation | - | - | 748 | |
| Provision for doubtful accounts (recoveries) | 22,230 | 18,000 | (3,005) | |
| Loss on sales-type lease termination | 11,659 | - | (5,319) | |
| Deferred income tax (benefit)/expense | 4,150 | 19,448 | 75,966 | |
| Changes in: | ||||
| Trade accounts, notes and lease receivable | (278) | (32,537) | (28,999) | |
| Marketing Fund contributions receivable | (2,399) | (2,184) | 13,275 | |
| Prepaid expenses and other assets | 14,253 | 23,594 | (12,186) | |
| Accounts payable and accrued expenses | 79,167 | 7,312 | 8,680 | |
| Unexpended Marketing Fund | ||||
| franchisee contributions | (37,068) | (89,563) | (329,148) | |
| Deferred franchise fee revenue | (40,673) | 50,168 | 16,850 | |
| Net Cash Provided by Operating Activities | 484,811 | 427,165 | 166,813 | |
| Investing Activities | ||||
| Sale of equipment | 16,700 | - | - | |
| Advances to affiliates (net of repayments) | (172,652) | (276,802) | (324,240) | |
| Issuance of note receivable | (25,610) | - | - | |
| Net Cash Used in Investing Activities | (181,562) | (276,802) | (324,240) | |
| (Decrease)/Increase in Cash | 303,249 | 150,363 | (157,427) | |
| Cash and Restricted Cash, Beginning of Year | 2,034,040 | 1,883,677 | 2,041,104 | |
| Cash and Restricted Cash, End of Year | $ 2,337,289 | $ 2,034,040 | $ 1,883,677 | |
| Supplemental disclosure of cash flow information: | ||||
| Taxes paid (recorded through inter-company account) | $ 165,857 | $ 158,550 | $ 117,841 | |
| Interest paid | $ - | $ - | $ - | |
| Non-cash operating and investing activities | ||||
| Asset held for resale offsetting lease termination loss | $ 4,500 | $ - | $ - | |
| Adopted Accounting Pronouncements | ||||
| In June | 2016, November 30, | the FASB November 30, | issued ASU | 2016-13, |
| 2024 | 2023 | |||
| Accounts Receivable (Franchise Related) | $ 69,285 | $ 55,781 | ||
| Notes Receivable | 51,103 | 30,873 | ||
| Lease Receivable, Net of Unamortized Interest | - | 38,306 | ||
| 120,388 | 124,960 | |||
| Less: Allowance for Credit Losses | ( 51,103) | ( 28,873) | ||
| Total Receivables | 69,285 | 96,087 | ||
| Less: Current Portion | ( 69,285) | ( 92,576) | ||
| Long-Term Receivables | $ - | $ 3,511 | ||
| (Franchise | (Vendor | Notes | Receivable, | |
| Related) | Related) | Receivable | Net | |
| Balance at November 30, 2023 | $ - | $ - | $ 28,873 | $ - |
| Adjustments to Allowance for Adoption | ||||
| of ASU 2016-13 | - | - | - | - |
| Write-offs | - | - | - | - |
| Recoveries | - | - | (5,380) | - |
| Provision for Credit Losses | - | - | 27,610 | - |
| Balance at November 30, 2024 | $ - | $ - | $ 51,103 | $ - |
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the advances to affiliates (net of repayments) in 2022 were reported as a negative value, indicating a net outflow of funds. Specifically, the FDD reveals that the advances to affiliates (net of repayments) for Big Apple Bagels in 2022 amounted to ($324,240). This figure is part of the investing activities section within the cash flow statement.
This information is relevant for prospective franchisees as it provides insight into how Big Apple Bagels manages its financial relationships with affiliated entities. Advances to affiliates could represent loans, investments, or other forms of financial support provided to related companies. The net figure suggests that the total amount of advances made during the year exceeded the repayments received from affiliates.
Understanding these related-party transactions is crucial for assessing the overall financial health and stability of Big Apple Bagels. Franchisees should consider this information in conjunction with other financial data provided in the FDD to gain a comprehensive understanding of the company's financial practices and potential risks.