What was the current provision for income taxes for Big Apple Bagels in 2023?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
a franchisee was terminated, and the equipment securing the lease was sold. As a result, the Company recorded a loss of approximately $11,700 on the lease termination after the sale of the equipment.
As of November 30, 2023, the lease was recorded as a lease receivable of $38,306. Dur
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, the company's provision for income taxes in 2023 totaled $177,997. This total comprises three components: federal income taxes, state income taxes, and deferred income taxes.
Specifically, the federal income tax provision for Big Apple Bagels in 2023 was $118,446. The state income tax provision amounted to $40,103, and the deferred income tax provision was $19,448. These figures reflect the company's tax obligations as if it were filing a separate return, even though it is part of a group that files a consolidated tax return.
Prospective franchisees should understand that these figures represent the company's income tax expenses and that their individual tax obligations as franchisees will depend on their specific business structure, income, and deductions. It is advisable to consult with a financial professional to understand the tax implications of investing in a Big Apple Bagels franchise.