What amount of revenue did Bens Soft Pretzels recognize at a point in time?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
2024, 2023, and 2022
NOTE 2 – REVENUE RECOGNITION (CONTINUED)
Disaggregation of revenue from contracts with customers (continued)
| Franchise | Royalty | Advertising | Other | _ | |
|---|---|---|---|---|---|
| Fees | Fees | Fund Fees | Income | Total | |
| Revenue from contracts with customers | $ 147,358 | $ 1,064,701 | $ 232,493 | $ 18,418 | $ 1,462,970 |
| Revenue from other sources | - | - | - | 49,588 | 49,588 |
| $ 147,358 | $ 1,064,701 | $ 232,493 | $ 68,006 | $ 1,512,558 | |
| Franchise | Royalty | Advertising | Other | ||
| Fees | Fees | Fund Fees | Income | Total | |
| Revenue recogni |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, in 2022, the company recognized $1,315,612 in revenue from contracts with customers at a point in time. This revenue is derived from royalties amounting to $1,064,701, advertising fund fees totaling $232,493, and other income of $18,418.
For a prospective franchisee, this indicates the revenue streams that Bens Soft Pretzels recognizes immediately as opposed to over a period. The bulk of this revenue comes from royalties, which are a percentage of gross sales from each bakery, excluding sales tax, pre-approved coupons, and loyalty reward redemptions. Advertising fees also contribute significantly, and these are also based on a percentage of each bakery's gross sales.
Understanding how Bens Soft Pretzels recognizes revenue is crucial for franchisees as it impacts the financial relationship between the franchisee and franchisor. Franchisees should ensure they understand how royalties and advertising fees are calculated and when they are due. This information helps in forecasting expenses and managing cash flow. The FDD also specifies that these royalties and advertising fund fees are collected weekly from the bakeries, which means franchisees need to have systems in place to track and remit these payments regularly.