What was the total amount of long-term liabilities for Bens Soft Pretzels as of December 31, 2023?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 1,629,472 | $ 1,301,147 | |
BEN'S SOFT PRETZELS FRANCHISING CORPORATION BALANCE SHEETS
December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| LIABILITIES AND | |||
| STOCKHOLDERS' EQUITY | |||
| Current liabilities | |||
| Current maturities of deferred revenue | $ 112,547 | $ 102,473 | $ 115,774 |
| Current maturities of deferred rebates | 3,000 | - | - |
| Current maturities of long-term debt | 13,001 | 22,051 | 12,584 |
| Accounts payable | 15,411 | 27,973 | 36,164 |
| Accounts payable - related parties | 16,558 | 8,915 | 9,959 |
| Gift cards payable | 82,465 | 81,173 | 75,975 |
| Accrued salaries and wages | 15,575 | 10,106 | 5,439 |
| Accrued property tax | 8,100 | 7,500 | - |
| Accrued distributions | 3,059 | 3,059 | 3,144 |
| Other current liabilities | 1,608 | - | _ |
| Total current liabilities | 271,324 | 263,250 | 259,039 |
| Long-term liabilities | |||
| Deferred revenue - franchise fee | 332,002 | 300,060 | 346,954 |
| Deferred revenue - related party | - | 234 | 698 |
| Deferred revenue - rebate incentive | 12,000 | - | - |
| Long-term debt | 230,382 | 252,150 | 25,701 |
| 6 | 574,384 | 552,444 | 373,353 |
| Less current maturities of deferred | , | , | , |
| revenue, rebates, and long-term debt | (128,548) | (124,524) | (128,358 |
| Total long-term liabilities | 445,836 | 427,920 | 244,995 |
| Total liabilities | 717,160 | 691,170 | 504,034 |
| Stockholders' equity | |||
| Common stock, no par value, 1,000,000 | |||
| shares authorized, 10,000 shares | |||
| issued and outstanding | 10,000 | 10,000 | 10,000 |
| Retained earnings | 1,054,177 | 928,302 | 787,113 |
| Total stockholders' equity | 1, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the company's total long-term liabilities as of December 31, 2023, were $427,920. This figure represents the financial obligations of Bens Soft Pretzels that are not expected to be settled within one year. These liabilities include deferred revenue related to franchise fees and rebate incentives, as well as long-term debt.
Understanding the composition of these long-term liabilities is crucial for prospective franchisees. Deferred revenue, for instance, arises from initial franchise fees that Bens Soft Pretzels recognizes over the term of the franchise agreement. Long-term debt represents borrowed funds that the company must repay over an extended period. The balance between deferred revenue and long-term debt can indicate the company's financial strategy and stability.
It is important to note that the total liabilities also include current liabilities, which are obligations due within one year. As of December 31, 2023, Bens Soft Pretzels' total liabilities, including both current and long-term, amounted to $691,170. Reviewing the trend of these liabilities over the three years presented (2022-2024) can provide insights into the company's financial management and potential risks. A prospective franchisee should analyze these figures in conjunction with the company's assets and equity to assess its overall financial health.