What was the reported deferred income tax expense for Big Apple Bagels in 2023?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the deferred income tax expense for 2023 was $19,448. This figure reflects the difference between the company's taxable income and its accounting income, representing taxes that are deferred to future periods. This deferred tax expense is a component of the total income tax expense reported by Big Apple Bagels.

For a prospective franchisee, understanding deferred income taxes is crucial because it impacts the overall profitability and financial health of the franchise. Deferred tax expenses can arise from various factors, such as differences in depreciation methods or revenue recognition policies between tax and accounting standards. These deferred taxes eventually need to be paid, so it is essential to consider them when evaluating the long-term financial performance of Big Apple Bagels.

It's also important to note that the effective tax rates for Big Apple Bagels in 2023 were 21.7% for the federal rate and 7.4% for the state rate, net of the federal tax effect. These rates, along with the deferred income tax expense, contribute to the total tax provision reported by the company. Franchisees should be aware of these tax implications and how they might affect their own financial planning and obligations.

Reviewing these figures in the context of Big Apple Bagels' overall financial statements can provide a more comprehensive understanding of the company's tax position and its potential impact on franchisee profitability. Consulting with a financial advisor or tax professional is recommended to fully assess the implications of these figures for individual franchise investments.