What was the total value of other assets held by Big Apple Bagels in 2023?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ents.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about BAB Systems, Inc.'s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
February 3, 2025 Oak Brook, Illinois
BAB Systems, Inc. Balance Sheets November 30, 2024 and 2023
Assets
| 2024 | 2023 | |
|---|---|---|
| Current Assets | ||
| Cash, including restricted cash | $ 2,337,289 | $ 2,034,040 |
| of $159,704 in 2024 and $183,944 in 2023 | ||
| Trade accounts and notes receivable (net of allowance for | ||
| doubtful accounts of $51,103 in 2024 and $28,873 in 2023) | 51,890 | 42,785 |
| Marketing Fund contributions receivable from franchisees | 17,394 | 14,995 |
| Lease receivable | - | 5,900 |
| Prepaid expenses and other current assets | 50,673 | 60,426 |
| Total Current Assets | 2,457,246 | 2,158,146 |
| Property and Equipment | ||
| Furniture and fixtures | 18,041 | 18,041 |
| Equipment | 113,377 | 113,377 |
| 131,418 | 131,418 | |
| Less accumulated depreciation and amortization | (131,418) | (131,418) |
| Property and Equipment, Net | - | - |
| Other Assets | ||
| Lease receivable | - | 32,406 |
| Goodwill | 1,260,111 |
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the total value of other assets held by the company in 2023 was $1,292,517. These assets include a lease receivable of $32,406 and goodwill valued at $1,260,111.
Understanding the composition and valuation of these 'other assets' is important for prospective franchisees. Goodwill, for example, is an intangible asset reflecting the brand's reputation and customer relationships. A significant goodwill value suggests a strong brand presence, which can be a positive indicator for franchisees. The lease receivable represents money owed to Big Apple Bagels under lease agreements.
It is worth noting that the total value of other assets decreased from $1,292,517 in 2023 to $1,260,111 in 2024. This change was due to the lease receivable being eliminated. Reviewing these figures over several years can reveal trends in the company's asset management and financial health. Franchisees should seek clarification from Big Apple Bagels regarding the nature of these assets and how they contribute to the overall financial stability of the franchise system.