What amount of distributions were paid by Bens Soft Pretzels in the earliest year presented?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Net change in cash and cash equivalents | $ 55,362 | $ | 20,752 | $ (180,288) |
|---|---|---|---|---|
| Cash and cash equivalents, beginning of year | 487,528 | 466,776 | 647,064 | |
| Cash and cash equivalents, end of year | 542,890 | $ | 487,528 | $ 466,776 |
| Supplemental disclosure of cash flow information | ||||
| Cash paid during the year for interest | $ 16,409 | $ | 14,720 | $ 1,405 |
| Cash paid during the year for taxes | $ 573 | $ | 463 | $ 210 |
| Schedules of noncash investing and financing transactions Acquisitions of equipment | ||||
| Cost of equipment Trade-in allowance | $ 85,360 (33,000) | $ | 329,093 | $ 101,578 |
| Cash payment for equipment | $ 52,360 | $ | 329,093 | $ 101,578 |
| Distributions declared Plus accrued distributions paid | $ 212,385 | $ | 121,578 85 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, Bens Soft Pretzels' statements of cash flows include information regarding distributions paid for the years 2022, 2023, and 2024. The earliest year presented is 2022.
In 2022, Bens Soft Pretzels paid distributions of $55,884. This represents the actual cash outflow from the company to its owners or shareholders during that year.
Prospective franchisees should consider these distribution amounts in the context of the company's overall financial performance. Distributions reflect how much profit the company is sharing with its owners, which can be an indicator of financial health. However, it's also important to assess whether these distributions are sustainable and do not negatively impact the company's ability to reinvest in growth or meet its financial obligations.