For what purpose did BSP Mobile use the advance from Bens Soft Pretzels in 2019?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
y, was outstanding and included in related party receivables.
December 31, 2024, 2023, and 2022
NOTE 4 – RELATED PARTY RECEIVABLES (CONTINUED)
During 2019, the Company advanced $19,093 to BSP Mobile, an entity related through common ownership. The advance was used to assist in the purchase of a vehicle. The balance is due on demand and no interest is being charged on this balance. BSP Mobile paid back $7,093 during 2020. BSP Mobile paid back $6,136 during 2022. BSP Mobile fully paid off in
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Ben's Soft Pretzels' 2025 Franchise Disclosure Document, in 2019, Ben's Soft Pretzels advanced $19,093 to BSP Mobile, an entity related through common ownership. The FDD states that BSP Mobile used this advance to assist in the purchase of a vehicle. The balance was due on demand, and no interest was charged on this balance.
BSP Mobile made payments toward this balance, paying back $7,093 during 2020 and $6,136 during 2022. The advance was fully paid off in 2023. As of December 31, 2024, 2023, and 2022, the outstanding balances were $0, $0, and $5,864, respectively, and were included in related party receivables.
This type of related-party transaction is not uncommon, but prospective franchisees should be aware of how Ben's Soft Pretzels manages these transactions and ensures they do not negatively impact the franchise system. It is important to note that the advance was fully paid off, indicating proper financial management. However, franchisees may want to inquire about the terms and conditions of such advances to related entities to ensure transparency and fairness.