What was the total amount of operating expenses 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 company's total operating expenses for the year 2024 were $1,333,609, representing 80.77% of net sales. This figure is part of the audited financial statements included in the FDD. Reviewing these expenses can provide insight into the costs Bens Soft Pretzels incurs to support its franchise system.
For a prospective franchisee, understanding the franchisor's operating expenses is crucial because it reflects the financial health and stability of the company. Higher operating expenses relative to revenue could indicate inefficiencies or areas of concern. Conversely, well-managed operating expenses can contribute to a stronger, more profitable franchise system.
It's also useful to compare these figures with previous years. In 2023, Bens Soft Pretzels' operating expenses were $1,236,732 (81.76% of net sales), and in 2022, they were $927,960 (74.30% of net sales). The increase in both the absolute amount and percentage of net sales from 2022 to 2024 suggests that operating costs are rising, which could impact the profitability of both the franchisor and its franchisees. A prospective franchisee should inquire about the reasons for these increases and whether Bens Soft Pretzels has strategies to manage these costs.
Analyzing these trends in conjunction with revenue figures provides a more complete picture of the company's financial performance. For example, while net sales increased from $1,512,558 in 2023 to $1,651,210 in 2024, the increase in operating expenses slightly offset this growth. Therefore, potential franchisees should carefully examine these financial statements and consider seeking professional financial advice to fully understand the implications for their investment.