What was the total other income (expense) for Bens Soft Pretzels in 2023?
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 total other income (expense) for the year 2023 was a loss of ($12,596). This figure is part of the broader financial statements that include revenues, operating expenses, and other financial activities. This loss is calculated before income taxes are considered.
For a prospective franchisee, understanding the 'other income (expense)' line is crucial as it reflects income or expenses not directly tied to the primary revenue streams of franchise fees, royalties, and advertising. These items can include interest income, interest expenses, and gains from the sale of assets. In 2023, the negative value indicates that Bens Soft Pretzels had more expenses than income from these non-core activities.
It's important to note that while the total revenue for Bens Soft Pretzels in 2023 was $1,512,558, the 'other income (expense)' component had a slightly negative impact on the overall profitability. This category can fluctuate from year to year, as seen by the $4,639 income in 2022 and the $21,232 income in 2024. Franchisees should look at these trends over several years to understand how these non-core activities might affect the franchisor's financial health and stability.
Reviewing the components of 'other income (expense)' such as interest income, interest expense, and any gains or losses from asset sales, provides a more detailed picture of the franchisor's financial management and can help a franchisee assess the financial risks and opportunities associated with investing in a Bens Soft Pretzels franchise.