What is the difference in franchise fees receivable between 2023 and 2024 for Bens Soft Pretzels?

According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the current portion of franchise fees receivable, net of the allowance for credit losses, was $21,000 as of December 31, 2023, and $15,000 as of December 31, 2024. Therefore, the difference in franchise fees receivable between 2023 and 2024 is $6,000. This indicates a decrease in the amount of franchise fees that were outstanding and owed to Bens Soft Pretzels from its franchisees during this period.

This receivable balance represents instances where Bens Soft Pretzels allowed franchise owners to pay their initial franchise fee over time, typically within twelve months. These amounts are classified as current assets on the balance sheet, and no interest is charged on these balances. Bens Soft Pretzels manages these receivables by periodically reviewing them and recording an allowance for credit losses based on economic conditions, franchisee history, and bakery performance.

For a prospective franchisee, this information highlights the importance of understanding the payment terms for the initial franchise fee and the potential for these fees to be financed over time. It also shows that Bens Soft Pretzels actively manages its receivables and accounts for potential credit losses, which could impact the franchisor's financial stability. Franchisees should inquire about the specific payment arrangements available and the criteria used to determine eligibility for extended payment terms.