What was the ERC grant income 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) | - |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the company received $6,027 in ERC grant income in 2022. This income is specifically related to the Employee Retention Credit (ERC) established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020.
The ERC was designed to help businesses retain employees during the pandemic by providing a credit based on qualified wages and health insurance benefits paid between March 15, 2020, and September 30, 2021. Bens Soft Pretzels accounted for these funds as a conditional grant under FASB ASC 958-605, recognizing the full amount of grant proceeds as income in 2021 after filing amended payroll tax returns.
Although the ERC funds were fully recognized as income in 2021, $6,027 was not received until 2022. This receipt impacted the balance sheet and statement of cash flows for the year ending December 31, 2022, by reducing receivables and increasing financing activities, without affecting the statement of income and retained earnings for that year. A prospective franchisee should note that this was a one-time event related to pandemic-era legislation and is unlikely to recur.