What were the franchise-related expenses for Big Apple Bagels in 2023?
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 | |
| Income from Operations | 601,703 | 610,468 | 597,846 | |
| Interest Income | 2,074 | 456 | 412 | |
| Income before Income Taxes | 603,777 | 610,924 | 598,258 | |
| Provision/(Benefit) for Income Taxes | ||||
| Current | 165,857 | 158,549 | 92,341 | |
| Deferred | 4,150 | 19,448 | 75,966 | |
| Total Tax Provision | 170,007 | 177,997 | 168,307 | |
| Net Income | 433,770 | 432,927 | 429,951 | |
| Retained Earnings, Beginning of Year | 8,859,801 | 8,426,874 | 7,996,923 | |
| Retained Earnings, End of Year (Exhibit A) | $ 9,293,571 | $ 8,859,801 | $ 8,426,874 |
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchise-related expenses for 2023 were $4,515. This figure reflects costs specifically categorized as relating to franchise activities.
Understanding this expense is important for prospective franchisees as it provides insight into the costs Big Apple Bagels incurs to support its franchise network. These expenses can include items such as franchise sales, training, and ongoing support services. Monitoring this figure over time, as presented in the table, can reveal trends in how Big Apple Bagels invests in its franchise system.
Franchise-related expenses are typically a small portion of overall operating costs. For Big Apple Bagels, in 2023, the total operating costs and expenses were $2,677,089, making the franchise-related expenses a relatively minor component. Reviewing these expenses in relation to revenues can help potential franchisees assess the financial health and stability of the franchise system.
It's worth noting that these expenses do not directly translate into costs that a franchisee will incur. Instead, they represent the franchisor's investment in maintaining and growing the franchise system, which indirectly benefits franchisees through brand support and system improvements.