What was the deferred income tax expense for Big Apple Bagels in 2023?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the deferred income tax expense for the company in 2023 was $19,448. This figure reflects the difference between income tax recognized for financial reporting purposes and the amount calculated for tax returns. Deferred income taxes arise from temporary differences in the book and tax basis of assets and liabilities.

For a prospective Big Apple Bagels franchisee, understanding deferred income tax is crucial for assessing the company's financial health. A deferred income tax expense suggests that Big Apple Bagels had taxable income higher than its accounting income, which could be due to various factors such as accelerated depreciation methods or differing revenue recognition policies. This information, in conjunction with other financial statement data, provides a more complete picture of the company's profitability and tax obligations.

It's important to note that deferred income taxes can fluctuate from year to year based on changes in accounting practices, tax laws, and business operations. Franchisees should consult with a financial advisor to fully understand the implications of deferred income taxes and how they might affect the overall financial performance of Big Apple Bagels.