How much did Brueggers Bagels lose on the disposal of assets in 2022?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
g and disposal charges for the fiscal years ended December 31, 2024, December 26, 2023, and December 27, 2022 consist of the following (in thousands, except coffeehouse and bakery numbers):
| Fiscal Year Ended | ||||||
|---|---|---|---|---|---|---|
| December 31, 2024 | December 26, 2023 | December 27, 2022 | ||||
| Coffeehouse and bagel bakery closures | 20 | 35 | 17 | |||
| Amount charged for closed and | $ | 376 | $ | 1,245 | $ | 680 |
| transferring coffeehouses and bagel bakery: | ||||||
| Other closing costs | ||||||
| Net loss on sale of closed coffeehouse and |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 FDD, Brueggers Bagels experienced a net loss of $1,100,000 on the sale of closed coffeehouse and bagel bakery property and equipment during the fiscal year ended December 27, 2022. This figure is part of a broader category of expenses related to closures and disposals.
This loss represents the difference between the book value of the assets and the proceeds received from their sale. These costs are associated with store closures and the disposal of related assets, which can include property, equipment, and other related expenses. These costs can arise from underperforming locations or strategic decisions to optimize the Brueggers Bagels network.
For a prospective franchisee, this indicates that Brueggers Bagels, like many franchise systems, periodically closes underperforming locations, resulting in financial losses from asset disposal. While this is a normal part of business, it highlights the importance of location selection and operational efficiency to minimize the risk of closure and associated losses. Understanding these potential costs can help franchisees better assess the financial risks and opportunities associated with investing in a Brueggers Bagels franchise.