What were the distributions for Bens Soft Pretzels in 2022?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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BEN'S SOFT PRETZELS FRANCHISING CORPORATION STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net income | $ 338,260 | $ 262,767 | $ 325,475 |
| Adjustments to reconcile net income to net | |||
| cash provided by operating activities | |||
| Depreciation | 54,160 | 49,812 | 29,526 |
| Gain on sale of asset | (33,000) | - | - |
| ERC grant income | - | - | (6,027 |
| (Increase) decrease in assets | |||
| Accounts receivable, net | (138,340) | 8,305 | (66,654 |
| Franchise fees receivable | 6,000 | 19,000 | (34,000 |
| Related party receivables | 65,070 | (27,995) | (346,005 |
| Rebates receivable | 6,998 | (5,090) | (2,796 |
| Other current assets | (5,031) | (22,512) | 4,494 |
| Increase (decrease) in liabilities | |||
| Accounts payable | (12,562) | (8,191) | 24,844 |
| Accounts payable - related parties | 7,643 | (1,044) | 6,508 |
| Gift cards payable | 1,292 | 5,198 | 5,392 |
| Accrued salaries and wages | 5,469 | 4,667 | 1,503 |
| Accrued property tax | 600 | 7,500 | - |
| Deferred revenue and rebates | 43,708 | (47,358) | 40,935 |
| Other current liabilities | 1,608 | - | - |
| Net cash from operating activities | 341,875 | 245,059 | (16,805 |
| Cash flows from investing activities | |||
| Purchase of property and equipment | (52,360) | (329,093) | (101,578 |
| Net cash from investing activities | (52,360) | (329,093) | (101,578 |
| Cash flows from financing activities | |||
| Proceeds from long-term debt | - | 247,200 | - |
| ERC grant proceeds | - | - | 6,027 |
| Principal payments on long-term debt | (21,768) | (20,751) | (12,048 |
| Distributions | (212,385) | (121,663) | (55,884 |
| Net cash from financing activities | $ (234,153) | $ 104,786 | $ (61,905 |
BEN'S SOFT PRETZELS FRANCHISING CORPORATION STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2024, 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the distributions for the year 2022 were ($55,884). This figure is found within the statement of cash flows, specifically under cash flows from financing activities. Distributions represent the payments made by Bens Soft Pretzels to its owners or shareholders, reflecting a return of capital or profits. These distributions are a key component of the company's financial activities and provide insight into how the company manages its capital structure.
For a prospective franchisee, understanding the franchisor's distribution history can offer insights into the financial stability and profitability of Bens Soft Pretzels. While distributions themselves don't directly impact a franchisee's operations, they reflect the overall financial health of the company. A consistent pattern of distributions may indicate a stable and profitable business, while fluctuations could signal changes in financial performance or strategic priorities. It is important to note that distributions are just one aspect of the financial picture and should be considered alongside other financial metrics.
It's also worth noting that in 2024, the balance of $42,177 related to advances for improvements on a new building was reclassified to distributions. This indicates a change in how Bens Soft Pretzels accounted for these funds, potentially impacting the reported distribution amounts for that year. Franchisees should be aware of such accounting changes and their potential effects on financial reporting. Reviewing the complete financial statements and seeking professional financial advice can provide a more comprehensive understanding of the franchisor's financial position.
In summary, the distributions for Bens Soft Pretzels in 2022 were ($55,884), as detailed in the statement of cash flows. This information, along with other financial data, helps prospective franchisees assess the financial health and stability of the franchise system. Understanding these figures and their implications is crucial for making an informed investment decision.