What was the amount of state taxes paid by Bens Soft Pretzels in 2024?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
axable income. Therefore, no provision or liability for federal and state income taxes has been included in the financial statements. Certain states do not recognize S corporation status for income tax purposes, and ther
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the company paid $573 in state taxes for the year ending December 31, 2024. This is a relatively small amount, representing (0.03)% of their total revenue. For comparison, state taxes paid in 2023 were $463 and in 2022 were $210.
Bens Soft Pretzels operates as an S corporation, meaning that the shareholders typically pay the income taxes on their share of the company's taxable income, rather than the corporation itself paying federal and state income taxes. However, some states do not recognize S corporation status for income tax purposes, which accounts for the state taxes that Bens Soft Pretzels paid.
For a prospective franchisee, this indicates that Bens Soft Pretzels' tax structure is fairly straightforward. The franchisee should consult with a financial advisor to understand the full tax implications of investing in a Bens Soft Pretzels franchise, particularly regarding state taxes and S corporation status.