Are there notes to the Big Apple Bagels financial statements?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
See accompanying notes
Note 1 - Nature of Operations
BAB Systems, Inc. (the "Company") franchises and licenses Big Apple Bagels® ("BAB"), My Favorite Muffin® ("MFM") and SweetDuet Frozen Yogurt & Gourmet Muffins® ("SD") concepts located in the United States. The franchised units operating as "Big Apple Bagels®," featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. The BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as "My Favorite Muffin Gourmet Muffin Bakery™" ("MFM Bakery"), featuring a large variety of freshly baked muffins and coffees and units operating as "My Favorite Muffin Your All-Day Bakery Café®" ("MFM Cafe") featuring these products as well as a variety of specialty bagel sandwiches and related products. Although the Company doesn't actively market Brewster's stand-alone franchises, Brewster's coffee products are sold in most franchised units.
The Company, an Illinois Corporation, incorporated on December 2, 1992, was capitalized with a cash contribution by BAB, Inc. ("Inc"), a publicly traded Company, and was originally established to franchise "Big Apple Bagels®" stores.
Note 2 - Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 86)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, the financial statements have accompanying notes. Note 1 describes the nature of operations for BAB Systems, Inc., which franchises and licenses Big Apple Bagels, My Favorite Muffin, and SweetDuet Frozen Yogurt & Gourmet Muffins concepts within the United States. Big Apple Bagels units primarily operate in the Midwest and Western United States, offering daily baked bagels, flavored cream cheeses, premium coffees, and gourmet bagel sandwiches.
Note 1 also specifies that BAB Systems, Inc. was established in 1992 to franchise Big Apple Bagels stores. Note 2 summarizes significant accounting policies, addressing the use of estimates in preparing financial statements according to U.S. generally accepted accounting principles. This involves management making estimates and assumptions that could affect reported amounts of assets, liabilities, contingent items, revenues, and expenses. Actual results may differ from these estimates.
For a prospective franchisee, this means that the financial statements should be read in conjunction with these notes to fully understand the scope of Big Apple Bagels' operations and the basis for its accounting practices. Understanding the estimates and assumptions used in the financial statements is crucial for assessing the financial health and potential risks associated with investing in a Big Apple Bagels franchise.