What is the disaggregation of revenue from contracts with customers for Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
2024, 2023, and 2022
NOTE 2 – REVENUE RECOGNITION (CONTINUED)
Disaggregation of revenue from contracts with customers (continued)
| Franchise | Royalty | Advertising | Other | _ | |
|---|---|---|---|---|---|
| Fees | Fees | Fund Fees | Income | Total | |
| Revenue from contracts with customers | $ 147,358 | $ 1,064,701 | $ 232,493 | $ 18,418 | $ 1,462,970 |
| Revenue from other sources | - | - | - | 49,588 | 49,588 |
| $ 147,358 | $ 1,064,701 | $ 232,493 | $ 68,006 | $ 1,512,558 | |
| Franchise | Royalty | Advertising | Other | ||
| Fees | Fees | Fund Fees | Income | Total | |
| Revenue recognized at a point in time | $ - | $ 1,064,701 | $ 232,493 | $ 18,418 | $ 1,315,612 |
| Revenue recognized over time | 147,358 | 147,358 | |||
| Revenue from contracts with customers | $ 147,358 | $ 1,064,701 | $ 232,493 2022 2022 | $ 18,418 | $ 1,462,970 |
| Franchise | Royalty | Advertising | Other | ||
| Franchise Fees | Royalty Fees | Other Income | Total | ||
| Revenue from contracts with customers | Advertising | Total $ 1,203,880 | |||
| Revenue from contracts with customers Revenue from other sources | Fees | Fees | Advertising Fund Fees | Income | |
| Fees | Fees | Advertising Fund Fees | Income $ 7,480 | $ 1,203,880 | |
| Fees $ 128,065 | Fees $ 877,461 | Advertising Fund Fees $ 190,874 | Income $ 7,480 45,126 | $ 1,203,880 45,126 | |
| Fees $ 128,065 - $ 128,065 | Fees $ 877,461 - $ 877,461 | Advertising Fund Fees $ 190,874 - $ 190,874 | $ 7,480 45,126 $ 52,606 | $ 1,203,880 45,126 | |
| Fees $ 128,065 - $ 128,065 Franchise | Fees $ 877,461 $ 877,461 Royalty | Advertising Fund Fees $ 190,874 - $ 190,874 Advertising | Income 7,480 45,126 52,606 Other | $ 1,203,880 45,126 $ 1,249,006 | |
| Revenue from other sources | Fees $ 128,065 | Fees $ 877,461 - $ 877,461 Royalty Fees | Advertisin |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, Bens Soft Pretzels breaks down its revenue from contracts with customers into several categories. For the year 2024, the revenue from contracts with customers totaled $1,462,970. This total is comprised of $147,358 from franchise fees, $1,064,701 from royalty fees, $232,493 from advertising fund fees, and $18,418 from other income. Additionally, Bens Soft Pretzels also earned $49,588 from other sources, bringing the total revenue to $1,512,558.
Bens Soft Pretzels recognizes revenue from these contracts at different points in time. Specifically, royalty fees, advertising fund fees, and other income are recognized at a point in time, totaling $1,315,612. Franchise fees, on the other hand, are recognized over time, amounting to $147,358. This distinction is due to the nature of the services provided; initial franchise services are delivered over the term of the franchise agreement, while royalties and advertising fees are ongoing and recognized as they are earned.
For a prospective franchisee, this breakdown is useful for understanding the different revenue streams that contribute to Bens Soft Pretzels's income. It highlights the importance of royalty fees as the largest component of revenue from contracts with customers. It also shows how the initial franchise fee contributes to revenue over time, aligning with the ongoing support and brand usage provided to franchisees. Understanding these revenue streams can help a franchisee assess the financial stability and operational model of Bens Soft Pretzels.