What was the reported balance for Brueggers Bagels at December 27, 2022?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, the balance at December 27, 2022, was reported as $11,763. This figure represents the balance of stored value cards, such as gift cards, that had been issued but not yet redeemed as of that date. This balance is subject to change as more cards are issued and redeemed.

During the period leading up to December 27, 2022, Brueggers Bagels issued $129,722 in stored value cards and redeemed $126,849 worth of cards. Additionally, a breakage amount of $3,082 was factored in. Breakage refers to the portion of stored value cards that are not expected to be redeemed, and Brueggers Bagels recognizes this breakage as income over time.

For a prospective franchisee, understanding the stored value card program is important because it impacts both revenue recognition and potential liabilities. The initial sale of a stored value card does not immediately count as revenue; instead, it is deferred and recognized when the card is redeemed. The balance of outstanding stored value cards represents a potential future obligation for Brueggers Bagels, as customers can redeem these cards for products or services. The management of breakage and escheatment (remitting balances to government agencies under unclaimed property laws) are also important considerations for financial reporting and compliance.