What was the total franchise fees revenue for Bens Soft Pretzels?
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 initial franchise fee revenue for 2024 was $120,792, for 2023 it was $147,358, and for 2022 it was $128,065. These figures represent the revenue Bens Soft Pretzels recognized from initial fees paid by new franchisees for the right to operate a Bens Soft Pretzels location. The franchise fees contribute a small portion of the total revenue, with royalty fees and advertising revenue making up a larger percentage.
For a prospective franchisee, this indicates the franchisor's revenue stream from initial franchise fees over the past three years. The initial franchise fee revenue can fluctuate year to year, which could be due to the number of new franchises opened in those years or changes in the franchise fee itself. A potential franchisee should consider these trends in conjunction with other financial metrics to assess the overall financial health and growth trajectory of Bens Soft Pretzels.
It's important to note that the initial franchise fee revenue is recognized over the term of the franchise agreement. The deferred portion of this revenue totaled $332,002 as of December 31, 2024. This means that while the initial fee might be collected upfront or over a period, the revenue is recognized gradually as Bens Soft Pretzels fulfills its obligations under the franchise agreement. This accounting practice provides a more accurate representation of revenue recognition over the life of the franchise agreement.