What was the employee benefit 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's 2025 Franchise Disclosure Document, the employee benefit expense for the company in 2024 was $87,604. This figure represents the total cost incurred by Big Apple Bagels for employee benefits, such as health insurance, retirement plans, and other perks provided to its employees.
For a prospective franchisee, understanding this expense is crucial as it provides insight into the operational costs of the franchisor. While this is not directly the franchisee's expense, it can reflect on the franchisor's overall financial health and stability. A well-managed franchisor is more likely to provide better support and resources to its franchisees.
Reviewing these expenses over the three years presented (2022-2024) shows a degree of variability. Employee benefit expenses were $76,249 in 2022, rose to $72,539 in 2023, and then increased to $87,604 in 2024. This kind of variance could be due to changes in staffing levels, adjustments to benefit packages, or other factors. Franchisees may want to inquire about the reasons behind these fluctuations to better understand the franchisor's financial management and potential future trends.