What was the retained earnings, ending, for Bens Soft Pretzels in 2024?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ETZELS FRANCHISING CORPORATION STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | } | 2022 | } | ||
|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | |
| Revenues | ||||||
| Initial franchise fee revenue | $ 120,792 | 7.32 | $ 147,358 | 9.74 | $ 128,065 | 10.25 |
| Royalty fee revenue | 1,202,010 | 72.79 | 1,064,701 | 70.39 | 877,461 | 70.26 |
| Advertising fund revenue | 243,430 | 14.74 | 232,493 | 15.37 | 190,874 | 15.28 |
| Other income | 84,978 | 5.15 | 68,006 | 4.50 | 52,606 | 4.21 |
| Net sales | 1,651,210 | 100.00 | 1,512,558 | 100.00 | 1,249,006 | 100.00 |
| Operating expenses | 1,333,609 | 80.77 | 1,236,732 | 81.76 | 927,960 | 74.30 |
| Income from operations | 317,601 | 19.23 | 275,826 | 18.24 | 321,046 | 25.70 |
| Other income (expense) | ||||||
| ERC grant income | - | - | - | - | 6,027 | 0.48 |
| Interest income | 4,641 | 0.28 | 2,124 | 0.14 | 17 | - |
| Interest expense | (16,409) | (0.99) | (14,720) | (0.97) | (1,405) | (0.11) |
| Gain on sale of asset | 33,000 | 2.00 | ||||
| Total other income (expense) | 21,232 | 1.29 | (12,596) | (0.83) | 4,639 | 0.37 |
| Income before income taxes | 338,833 | 20.52 | 263,230 | 17.41 | 325,685 | 26.07 |
| State taxes | (573) | (0.03) | (463) | (0.03) | (210) | (0.02) |
| NET INCOME | 338,260 | 20.49 | 262,767 | 17.38 | 325,475 | 26.05 |
| Retained earnings, beginning | 928,302 | 787,113 | 517,522 | |||
| D |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the retained earnings, ending balance for the company in 2024 was $1,054,177. This figure represents the accumulated profits of Bens Soft Pretzels that have been kept in the business rather than distributed to owners or shareholders. Retained earnings are an important indicator of a company's financial health and its ability to reinvest in future growth.
For a prospective franchisee, understanding the franchisor's retained earnings can provide insight into the financial stability and profitability of the company. A strong retained earnings balance suggests that Bens Soft Pretzels has been successful in generating profits and managing its finances effectively. This can be reassuring for franchisees who are considering investing in the brand.
However, it's also important to consider how Bens Soft Pretzels utilizes its retained earnings. Are they being reinvested in research and development, marketing, or other initiatives that could benefit franchisees? Or are they simply accumulating without a clear plan for future use? These are important questions to ask when evaluating the franchise opportunity. Additionally, retained earnings can be impacted by distributions, which for Bens Soft Pretzels were listed as $212,385 in 2024. This is an important factor to consider when analyzing the overall financial health of the company.
Ultimately, the retained earnings figure is just one piece of the puzzle when assessing the financial viability of a franchise. Prospective franchisees should carefully review the entire financial statements and consult with a financial advisor to make an informed decision about whether to invest in Bens Soft Pretzels.