For what purpose did BSP LLC use the advance from Bens Soft Pretzels in 2020?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- As of December 31, 2024, 2023, and 2022 a total of $0, $0 and $5,864 respectively, was outstanding and included in related party receivables.
During 2020, the Company advanced $34,000 to BSP LLC, an entity related through common ownership. The advance was used to assist in settling a cancelled lease agreement. The balance is due on demand and no interest is being charged on this balance. BSP LLC paid back $10,000 during 2020. BSP LLC paid back $5,414 during 2023. BSP LLC paid back $18,057 d
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Ben's Soft Pretzels' 2025 Franchise Disclosure Document, in 2020, Ben's Soft Pretzels advanced $34,000 to BSP LLC, an entity related through common ownership. This advance was specifically used to assist in settling a cancelled lease agreement.
The document states that the balance is due on demand and no interest is being charged on this balance. BSP LLC made several payments towards this advance: $10,000 during 2020, $5,414 during 2023, and $18,057 during 2024.
As of December 31, 2024, the outstanding balance was $529, while it was $18,586 as of December 31, 2023, and $24,000 as of December 31, 2022. This information is included in related party receivables.