What was the gain on sale of asset for Bens Soft Pretzels in 2024?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the company experienced a gain on the sale of an asset amounting to $33,000 in 2024. This figure is reported within the Statements of Cash Flows, specifically as an adjustment to reconcile net income to net cash provided by operating activities.
For a prospective franchisee, this indicates that Bens Soft Pretzels had a one-time financial gain from selling an asset during the 2024 fiscal year. This gain is a non-cash transaction that affects the company's net income but doesn't directly reflect its core operational performance. It's added back to net income when calculating cash flow from operations to provide a clearer picture of the company's actual cash-generating activities.
It is important to note that a gain on the sale of assets is not a recurring revenue stream. Franchisees should focus more on revenue from franchise fees, royalties, and advertising, as these reflect the ongoing health of the Bens Soft Pretzels business model. While a gain on sale of assets can positively impact the company's financial position in a given year, it should not be considered a key indicator of the franchise's long-term profitability or stability.