What was the total amount of related party receivables 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, |
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.