What were the payroll and 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 |
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, the payroll and related expenses for the company in 2023 were $536,846. This figure represents the total cost incurred by Big Apple Bagels for employee compensation, including salaries, wages, benefits, and related taxes. This is an important figure for prospective franchisees to consider as it reflects the franchisor's operational costs.
Understanding the franchisor's expenses can provide insight into the financial health and stability of the company. Lower payroll expenses might indicate efficient staffing or lower wage rates, while higher expenses could suggest a larger workforce or more competitive compensation packages. Franchisees can use this information to benchmark against their own potential payroll costs and assess the overall profitability of a Big Apple Bagels franchise.
It's also worth noting the trend in payroll expenses over the three years presented in the FDD. The payroll and related expenses increased from $471,779 in 2022 to $536,846 in 2023, and further to $601,402 in 2024. This upward trend could be due to various factors such as increased staffing, wage inflation, or enhanced employee benefits. Prospective franchisees should inquire about the reasons behind this trend to better understand the potential future costs associated with payroll.