What was the cost of equipment acquired by Bens Soft Pretzels in the most recent year?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the cost of equipment acquired in 2024 was $85,360, with a trade-in allowance of $33,000. This resulted in a cash payment for equipment of $52,360. These figures are derived from the statement of cash flows for the year ended December 31, 2024.
For a prospective franchisee, this indicates the level of investment Bens Soft Pretzels made in equipment during the 2024 fiscal year. It is important to note that the cost of equipment was partially offset by a trade-in allowance, reducing the actual cash outlay. This suggests that Bens Soft Pretzels may upgrade or replace equipment periodically, potentially influencing the types of equipment franchisees may need to purchase or lease when setting up their own locations.
The statement also includes figures for equipment acquisitions in 2023 and 2022, which were $329,093 and $101,578, respectively. Reviewing these figures over multiple years can provide a franchisee with an understanding of Bens Soft Pretzels' investment trends in equipment. This information is useful for budgeting and financial planning, as it provides insight into the potential costs associated with maintaining and updating equipment.
It is important for potential franchisees to discuss with Bens Soft Pretzels the specific types of equipment these figures represent and how often franchisees might need to upgrade or replace their equipment. Understanding the lifecycle and costs associated with equipment is crucial for assessing the overall financial viability of a Bens Soft Pretzels franchise.