When are the balances due from Live Large Distribution, Inc. to Bens Soft Pretzels due?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
, 2023, and 2022, a total of $0, $55,900, and $55,900 respectively, was outstanding and included in related party receivables on the balance sheet.
During 2015, the Company advanced $25,000 to Live Large Distribution, Inc., an entity related through common ownership. The money was used to purchase additional inventory that was sent to a third party for the purposes of fulfilling a new distribution agreement. During 2019, the Company advanced another $40,111 to be used for general operations. Live Large Distribution paid back $1,000 during 2020. During 2021, the Company advanced another $21,000 for the purchase of fixed assets. A total of $55 was paid back during 2021. During 2022, the Company advanced another $306,578 for expenses and purchase of fixed assets. A total of $1,000 was paid back during 2022. During 2023, the Company advanced another $121,552. A total of $86,293 was paid back during 2023. During 2024, the Company advanced another $7,459 for general operations. The balance is due on demand and no interest is being charged on this balance. As of December 31, 2024, 2023,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the balance due from Live Large Distribution, Inc. is due on demand. Bens Soft Pretzels advanced funds to Live Large Distribution, Inc., an entity related through common ownership, for various purposes including purchasing inventory, general operations, and fixed assets.
As of December 31, 2024, the total outstanding balance was $433,352. The outstanding balances as of December 31, 2023, and December 31, 2022, were $425,893 and $390,634, respectively. No interest is being charged on this balance.
This arrangement between Bens Soft Pretzels and Live Large Distribution, Inc. is important for prospective franchisees to understand as it represents a related-party transaction. Such transactions can present both opportunities and risks. While it may provide flexibility in managing finances, it also raises questions about potential conflicts of interest and the true financial health of the company. A potential franchisee should seek clarification from Bens Soft Pretzels regarding the nature of this relationship and its potential impact on the franchise system.