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What amount of royalty fees did Bens Soft Pretzels collect?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer from 2025 FDD Document

Royalty Fee Revenue – Franchises are required to pay the Company a royalty fee based on a percentage of its gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards. Revenue is recognized on a weekly basis based on the prior week's sales. A receivable is recorded at year end based on average sales per day for the week that spans year end. Royalty fees are due on a weekly basis.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)

What This Means (2025 FDD)

I am unable to provide the specific amount of royalty fees collected by Bens Soft Pretzels, according to the 2025 Franchise Disclosure Document. While the document discusses how royalty fees are calculated and collected, it does not provide the actual revenue figures for royalty fees. The FDD mentions that royalties are based on a percentage of each bakery's gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards. These fees are collected weekly, and a receivable is recorded at year-end for any royalties earned but not yet received.

To get a clear picture of the royalty fees, a prospective franchisee should carefully review the audited financial statements included in the FDD. These statements should provide a breakdown of the company's revenue streams, including royalty fees, for the past three fiscal years. If this information is not present, the prospective franchisee should ask Bens Soft Pretzels directly for the specific royalty fee revenue figures for 2022, 2023, and 2024.

Understanding the royalty fees is crucial for assessing the financial viability of a Bens Soft Pretzels franchise. Knowing the actual amounts collected in previous years will help a franchisee project their own potential royalty obligations based on their anticipated sales volume. This information, combined with other financial data in the FDD, will enable a prospective franchisee to make an informed decision about investing in a Bens Soft Pretzels franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.