What was the sale of equipment amount for Big Apple Bagels in 2024?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| - | - | | | 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 |
| Years Ended November 30, 2024, 2023 and 2022 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Operating Activities | ||||
| Net Income | $ 433,770 | $ 432,927 | $ 429,951 | |
| Adjustments to reconcile net income to cash | ||||
| flows provided by operating activities: | ||||
| Depreciation | - | - | 748 | |
| Provision for doubtful accounts (recoveries) | 22,230 | 18,000 | (3,005) | |
| Loss on sales-type lease termination | 11,659 | - | (5,319) | |
| Deferred income tax (benefit)/expense | 4,150 | 19,448 | 75,966 | |
| Changes in: | ||||
| Trade accounts, notes and lease receivable | (278) | (32,537) | (28,999) | |
| Marketing Fund contributions receivable | (2,399) | (2,184) | 13,275 | |
| Prepaid expenses and other assets | 14,253 | 23,594 | (12,186) | |
| Accounts payable and accrued expenses | 79,167 | 7,312 | 8,680 | |
| Unexpended Marketing Fund | ||||
| franchisee contributions | (37,068) | (89,563) | (329,148) | |
| Deferred franchise fee revenue | (40,673) | 50,168 | 16,850 | |
| Net Cash Provided by Operating Activities | 484,811 | 427,165 | 166,813 | |
| Investing Activities | ||||
| Sale of equipment | 16,700 | - | - | |
| Advances to affiliates (net of repayments) | (172,652) | (276,802) | (324,240) | |
| Issuance of note receivable | (25,610) | - | - | |
| Net Cash Used in Investing Activities | (181,562) | (276,802) | (324,240) | |
| (Decrease)/Increase in Cash | 303,249 | 150,363 | (157,427) | |
| Cash and Restricted Cash, Beginning of Year | 2,034,040 | 1,883,677 | 2,041,104 | |
| Cash and Restricted Cash, End of Year | $ 2,337,289 | $ 2,034,040 | $ 1,883,677 | |
| Supplemental disclosure of cash flow information: | ||||
| Taxes paid (recorded through inter-company account) | $ 165,857 | $ 158,550 | $ 117,841 | |
| Interest paid | $ - | $ - | $ - | |
| Non-cash operating and investing activities | ||||
| Asset held for resale offsetting lease termination loss | $ 4,500 | $ - | $ - | |
| Adopted Accounting Pronouncements | ||||
| In June | 2016, November 30, | the FASB November 30, | issued ASU | 2016-13, |
| 2024 | 2023 | |||
| Accounts Receivable (Franchise Related) | $ 69,285 | $ 55,781 | ||
| Notes Receivable | 51,103 | 30,873 | ||
| Lease Receivable, Net of Unamortized Interest | - | 38,306 | ||
| 120,388 | 124,960 | |||
| Less: Allowance for Credit Losses | ( 51,103) | ( 28,873) | ||
| Total Receivables | 69,285 | 96,087 | ||
| Less: Current Portion | ( 69,285) | ( 92,576) | ||
| Long-Term Receivables | $ - | $ 3,511 | ||
| (Franch |
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the sale of equipment in 2024 amounted to $16,700. This figure reflects the revenue Big Apple Bagels generated from selling equipment during that year.
For a prospective franchisee, this indicates a potential revenue stream for the franchisor beyond franchise fees and royalties. It's important to understand whether franchisees are required to purchase equipment directly from Big Apple Bagels or if they have the option to source it from alternative suppliers. If equipment purchases are mandated, this revenue could be a consistent source of income for the franchisor.
It is also important to note that the sale of equipment is listed under 'Investing Activities' which means that this is not part of the regular operating activities of Big Apple Bagels. Reviewing this number over several years can show trends and if equipment sales are increasing or decreasing.