What was the total value of Big Apple Bagels' retained earnings in 2023?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ 405,343 | $ 326,176 |
| Unexpended Marketing Fund franchisee contributions | 164,756 | 201,824 |
| Deferred franchise fee revenue | 21,353 | 30,094 |
| Total Current Liabilities | 591,452 | 558,094 |
| Other Non-current Liabilites | ||
| Deferred franchise fee revenue | 130,094 | 162,026 |
| Deferred income taxes | 190,450 | 186,300 |
| Total Non-Current Liabilities | 320,544 | 348,326 |
| Total Liabilities | 911,996 | 906,420 |
| Commitments and contingencies | ||
| Stockholders' Equity | ||
| Common stock - No par value, 1,000 shares authorized, | ||
| issued and outstanding | 1,071,002 | 1,071,002 |
| Additional paid-in-capital | 192,500 | 192,500 |
| Retained earnings (Exhibit B) | 9,293,571 | 8,859,801 |
| Due from BAB, Inc. | (5,036,875) | (5,021,579) |
| Due from BAB Operations | (2,714,837) | (2,557,481) |
| Total Stockholders' Equity | 2,805,361 | 2,544,243 |
| Total Liabilities and Stockholders' Equity | $ 3,717,357 | $ 3,450,663 |
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the company's retained earnings in 2023 were $8,859,801. Retained earnings represent the cumulative net income of the company that has not been distributed to shareholders as dividends. It's an indicator of the company's profitability and financial health.
For a prospective Big Apple Bagels franchisee, this figure provides insight into the financial stability and long-term profitability of the franchisor. A substantial amount of retained earnings suggests that the company has been consistently profitable and has effectively managed its finances over time. This can be reassuring for franchisees who are considering investing in the brand.
However, it's important to consider retained earnings in conjunction with other financial metrics and information provided in the FDD, such as liabilities, assets, and overall financial performance. A thorough review of the financial statements will provide a more comprehensive understanding of the franchisor's financial condition and its ability to support its franchisees.