What was the net income for Big Apple Bagels in 2022?
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 company's net income for the fiscal year 2022 was $429,951. This figure represents the profit remaining after all revenues and expenses, including operating costs, license fees, payroll, and taxes, have been accounted for.
For a prospective franchisee, understanding the franchisor's net income can provide insights into the overall financial health and stability of the Big Apple Bagels brand. A consistent net income suggests that the company is managing its operations effectively and generating profit from its franchise system. This can be a positive indicator for potential franchisees, as it implies that the franchisor has a sustainable business model.
However, it is important to note that the net income of the franchisor does not directly translate to the potential profitability of an individual franchise location. A franchisee's success will depend on various factors, including location, local market conditions, management skills, and the ability to control costs. Therefore, while the franchisor's net income provides a general overview of the company's financial performance, prospective franchisees should conduct their own due diligence and financial analysis to assess the potential profitability of their specific franchise location.
Furthermore, the FDD also provides details on the company's revenues, operating costs, and other financial metrics, which can offer a more comprehensive understanding of the company's financial performance. Reviewing these figures in conjunction with the net income can help potential franchisees make informed decisions about investing in a Big Apple Bagels franchise.