What were the professional service fees 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 professional service fees for the company in 2022 were $59,380.
This figure represents the expenses Big Apple Bagels incurred for services provided by professionals such as accountants, lawyers, and consultants. These costs are part of the overall operating costs and expenses, which totaled $2,419,376 in 2022. Understanding these expenses can help potential franchisees gauge the financial health and operational costs of the franchisor.
It's important to note that these are expenses incurred by the franchisor, BAB Systems, Inc., and not the franchisees. Franchisees will have their own professional service fees related to operating their individual Big Apple Bagels locations. Reviewing the franchisor's expenses can still provide insight into the types of ongoing support and services the franchisor invests in, which indirectly benefits the franchise system.