What was the interest income 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 | |
| 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 interest income for the company in 2024 was $2,074. This income contributes to the overall financial performance of Big Apple Bagels, which also includes revenue from royalty fees, franchise fees, and marketing fund revenue. Understanding the sources of income, including interest, helps potential franchisees assess the financial stability and revenue streams of the franchisor.
Interest income is a relatively small portion of Big Apple Bagels' total revenue, which amounted to $3,331,610 in 2024. The majority of the company's revenue comes from royalty fees from franchised stores ($1,994,814) and marketing fund revenue ($1,176,663). Franchisees should consider the relative importance of interest income compared to other revenue sources when evaluating the financial health of the company.
It is important to note that interest income can fluctuate from year to year based on various factors, including cash balances and interest rates. For Big Apple Bagels, the interest income in 2023 was $456 and in 2022 it was $412. Prospective franchisees should review historical financial statements and ask the franchisor about the factors that influence interest income to gain a better understanding of its potential variability.