What was the total amount of pre-opening expenses for Brueggers Bagels as of December 31, 2024?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
d statements of operations on a straight-line basis over the requisite service period (generally the vesting period).
Coffeehouse and Bagel Bakery Location Preopening and Closing Expenses
Costs incurred in connection with start-up and promotion of new coffeehouse and bagel bakery openings are expensed as incurred and are included in operating expenses in the consolidated statements of operations. The Company incurred $4.6 million, $2.5 million, and $2.8 million of coffeehouse and bagel bakery pre-opening expenses during the fiscal years ended December 31, 2024, December 26, 2023, and December 27, 2022, respectively. When a coffeehouse or bagel bakery is closed, the remaining carrying amount of property and equipment, net of expected recovery value, is charged to operations. For coffeehouses and bagel bakeries under operating lease agreements, the estimated liability under the lease is also accrued. In accordance
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the company incurred $4.6 million in coffeehouse and bagel bakery pre-opening expenses during the fiscal year ended December 31, 2024. This figure is part of the company's overall operating expenses.
For a prospective franchisee, this indicates the scale of investment Brueggers Bagels makes in launching new locations. These pre-opening expenses are costs related to the start-up and promotion of new coffeehouse and bagel bakery openings. These costs are expensed as they are incurred and are included within the operating expenses in the company's financial statements.
It's important to note that these are the expenses incurred by the company itself, not the initial investment a franchisee would need to open a Brueggers Bagels location. The franchisee's initial investment would cover costs like franchise fees, real estate, equipment, and initial marketing, as detailed in Item 7 of the FDD. This $4.6 million figure reflects Brueggers Bagels's corporate spending on pre-opening activities across all new locations opened during that year.
Understanding this distinction is crucial for a potential franchisee to accurately assess their own required investment versus the company's overall financial commitments to expansion and new store support.