What were the proceeds from long-term debt for Bens Soft Pretzels in 2023?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, Bens Soft Pretzels' proceeds from long-term debt in 2023 were $247,200. This figure reflects the amount of money Bens Soft Pretzels received from loans or other debt instruments with a repayment period extending beyond one year.
For a prospective franchisee, understanding the franchisor's debt financing activities can provide insights into the company's financial strategy and stability. Proceeds from long-term debt might be used for various purposes, such as funding expansion, investing in new technologies, or managing operational expenses. A significant increase in long-term debt could indicate growth initiatives, but it could also raise concerns about the company's ability to manage its debt obligations.
It's important to note that while the FDD provides historical financial data, it does not offer forward-looking projections or guarantees about future financial performance. Therefore, prospective franchisees should conduct their own due diligence and consult with financial advisors to assess the potential risks and rewards of investing in a Bens Soft Pretzels franchise.