What was the reported amount of accumulated depreciation for Bens Soft Pretzels in 2024?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
p, P.C.
Elkhart, IN June 9, 2025
BEN'S SOFT PRETZELS FRANCHISING CORPORATION BALANCE SHEETS
December 31, 2024, 2023, and 2022
| 2024 | 2024 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 542,890 | $ | 487,528 | $ 466,776 | |
| Accounts receivable, net | 255,151 | 116,811 | 125,116 | |||
| Franchise fees receivable | 15,000 | 21,000 | 40,000 | |||
| Related party receivables | 460,463 | 525,533 | 497,538 | |||
| Rebates receivable | 18,548 | 25,546 | 20,456 | |||
| Prepaids | 32,860 | 27,829 | 5,317 | |||
| Total current assets | 1,324,912 | 1,204,247 | 1,155,203 | |||
| Property and equipment | ||||||
| Property and equipment | 623,478 | 591,332 | 262,239 | |||
| Less accumulated depreciation | (167,053) | (166,107) | (116,295) | |||
| N |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the accumulated depreciation for the company in 2024 was $167,053. This figure represents the total depreciation expense recognized on the company's assets up to December 31, 2024. Accumulated depreciation is a contra-asset account that reduces the book value of the company's property and equipment on the balance sheet. The net property and equipment, after deducting accumulated depreciation, was $456,425 in 2024.
For a prospective franchisee, understanding accumulated depreciation is important because it provides insight into the age and condition of Bens Soft Pretzels' assets. A high accumulated depreciation relative to the original cost of the assets may indicate that the company's assets are aging and may require future replacement or repairs. This could potentially impact the franchisor's ability to support franchisees or maintain consistent standards across all locations.
In addition to the 2024 figure, the FDD also provides the accumulated depreciation for 2023 and 2022, which were $166,107 and $116,295, respectively. This historical data allows potential franchisees to assess the trend in depreciation and understand how Bens Soft Pretzels manages its assets over time. Reviewing these figures in conjunction with the company's statements of cash flows and capital expenditure plans can provide a more comprehensive view of the company's investment in its infrastructure.