What was the amount of revenue recognized related to contract liabilities for Big Apple Bagels in 2023?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the revenue recognized related to contract liabilities for the period ending November 30, 2023, was $(1,499,334). This figure represents a decrease in contract liabilities as revenue was earned and recognized from previously deferred amounts. Contract liabilities typically arise from initial franchise fees or other payments received before Big Apple Bagels has fully performed its obligations under the franchise agreement.

For a prospective franchisee, this information is useful for understanding how Big Apple Bagels recognizes revenue and manages its financial obligations. The negative value indicates that Big Apple Bagels fulfilled obligations during the year, thereby reducing its liabilities and recognizing the corresponding revenue. This is a common accounting practice in franchising, where initial fees are often recognized over the term of the franchise agreement.

It's important to note that these figures reflect the company's overall financial activities and may not directly correlate with the performance of individual franchise units. However, understanding the franchisor's revenue recognition practices can provide insight into the financial stability and management of Big Apple Bagels.