What was the accumulated depreciation for Bens Soft Pretzels' property and equipment in 2024?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
p, P.C.
Elkhart, IN June 9, 2025
BEN'S SOFT PRETZELS FRANCHISING CORPORATION BALANCE SHEETS
December 31, 2024, 2023, and 2022
| 2024 | 2024 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 542,890 | $ | 487,528 | $ 466,776 | |
| Accounts receivable, net | 255,151 | 116,811 | 125,116 | |||
| Franchise fees receivable | 15,000 | 21,000 | 40,000 | |||
| Related party receivables | 460,463 | 525,533 | 497,538 | |||
| Rebates receivable | 18,548 | 25,546 | 20,456 | |||
| Prepaids | 32,860 | 27,829 | 5,317 | |||
| Total current assets | 1,324,912 | 1,204,247 | 1,155,203 | |||
| Property and equipment | ||||||
| Property and equipment | 623,478 | 591,332 | 262,239 | |||
| Less accumulated depreciation | (167,053) | (166,107) | (116,295) | |||
| N |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the accumulated depreciation for property and equipment as of December 31, 2024, was $167,053. This figure represents the total depreciation expense that has been recognized against the company's property and equipment assets up to that point in time. Accumulated depreciation is a contra-asset account, meaning it reduces the net book value of the assets on the balance sheet. The original cost of Bens Soft Pretzels' property and equipment in 2024 was $623,478. After deducting the accumulated depreciation, the net property and equipment value was $456,425.
For a prospective franchisee, understanding accumulated depreciation is crucial because it provides insight into the wear and tear and the remaining useful life of the franchisor's assets. While franchisees do not directly own these assets of the franchisor, the franchisor's financial health and stability can impact the support and services they provide to franchisees. A significant increase in accumulated depreciation without corresponding investment in new assets could signal potential underinvestment or aging infrastructure, which might indirectly affect the franchise system.
It's also worth noting that depreciation is a non-cash expense, meaning it doesn't involve an actual outflow of cash. However, it does reduce the company's taxable income, which can result in tax savings. Bens Soft Pretzels calculates depreciation using the straight-line method, as detailed in Note 1 of the financial statements. This method evenly distributes the cost of an asset over its useful life. The FDD does not specify the exact useful lives that Bens Soft Pretzels assigns to different asset categories, but this is a standard accounting practice.
Franchisees should consider these figures in the context of the overall financial health of Bens Soft Pretzels. Comparing accumulated depreciation and net property and equipment values across multiple years (2022, 2023 and 2024) can reveal trends in capital investment and asset management. This information, combined with other financial metrics, can help potential franchisees assess the financial stability and long-term viability of the franchise system.