What expenses will a Big Apple Bagels franchisee incur?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You will incur at least the following expenses, and possibly more: inventory, labor, occupancy costs, pre-opening expenses, depreciation and amortization, taxes, insurance, operating expenses, royalty fees to us, advertising fees to us, other fees to us in the Franchise Agreement, professional fees, bank charges, telephone, repairs. All of your expenses will affect the operating profit, net income and/or cash flow of your BAGELS Store and should be carefully considered and evaluated.
Prospective franchisees or sellers of franchises should be advised that no Certified Public Accountant has audited these figures or expressed his/her opinion with regard to their content of form. The amounts have not been audited or reviewed for reasonableness by independent auditors.
Some outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell as much.
You should conduct an independent investigation of the costs and expenses you will incur in operating your BAGELS Store. We encourage you to consult with your own accounting, business, and legal advisors to assist you to prepare your budgets and projections, and to assess the likely or potential financial performance of your BAGELS Store. We also encourage you to contact existing BAGELS Store operators to discuss their experiences with the system and their Store business. Existing franchisees are your best source of information.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 76–80)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, franchisees will face several expenses. These include inventory, labor, occupancy costs, pre-opening expenses, depreciation and amortization, taxes, insurance, operating expenses, royalty fees, advertising fees, other fees outlined in the Franchise Agreement, professional fees, bank charges, telephone, and repairs. These costs will affect the store's operating profit, net income, and cash flow.
Big Apple Bagels does not provide specific financial data on these expenses, as they do not regularly collect this information from franchisees or operate company-owned stores. This means prospective franchisees need to conduct their own thorough investigation to estimate these costs accurately. It is standard practice in the franchise industry for franchisors to provide detailed financial performance representations, including typical expenses, but Big Apple Bagels relies on franchisees to gather this information independently.
To prepare realistic budgets and projections, Big Apple Bagels encourages prospective franchisees to consult with accounting, business, and legal advisors. They also recommend contacting existing Big Apple Bagels store operators to discuss their experiences and costs. This direct engagement with current franchisees is presented as the best way to obtain reliable financial insights. Prospective franchisees should seek detailed information from current owners to understand the full scope of potential expenses and profitability.