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What was the total amount of related party receivables for Bens Soft Pretzels in 2024?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer 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,

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)

What This Means (2025 FDD)

According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the total related party receivables as of December 31, 2024, was $460,463. This figure represents the aggregate amount due to Bens Soft Pretzels from entities related through common ownership or other affiliations. These receivables are considered current assets on the balance sheet.

Related party receivables can arise from various transactions, such as royalties, ad fund fees, gift card sales, and expenses paid by Bens Soft Pretzels on behalf of related entities. Note 4 of the financial statements indicates that the related party receivables balance includes $26,582 for royalties, ad fund fees, and gift cards receivables along with balances due for expenses paid by the Company on behalf of the related entities.

Prospective franchisees should understand that related party transactions are subject to scrutiny and must be conducted at arm's length to ensure fairness and transparency. While the FDD provides the aggregate amount of these receivables, further due diligence may be warranted to understand the nature and collectability of these balances. Reviewing the historical trends and aging of these receivables can provide additional insights into the financial health and management practices of Bens Soft Pretzels.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.