What was the total revenue from contracts with customers for Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ime. Revenues shown on the statement of income and retained earnings for the years ended December 31, 2024, 2023, and 2022, are as follows:
| F | ranchise | Royalty | Ad | lvertising | Other | _ | ||
|---|---|---|---|---|---|---|---|---|
| Fees | Fees | F | und Fees | ] | ncome | Total | ||
| Revenue from contracts with customers | $ | 120,792 | $ 1,202,010 | $ | 243,430 | $ | 29,758 | $ 1,595,990 |
| Revenue from other sources | - | - | 55,220 | 55,220 | ||||
| $ | 120,792 | $ 1,202,010 | $ | 243,430 | $ | 84,978 | $ 1,651,210 | |
| F | ranchise | Royalty | Ad | lvertising | Other | |||
| Fees | Fees | F | und Fees | ] | ncome | Total | ||
| Revenue recognized at a point in time | $ | - | $ 1,202,010 | $ | 243,430 | $ | 29,758 | $ 1,475,198 |
| Revenue recognized over time | 120,792 | - | - | - | 120,792 | |||
| Revenue from contracts with customers | $ | 120,792 | $ 1,202,010 | $ | 243,430 | $ | 29,758 | $ 1,595,990 |
December 31, 2024, 2023, and 2022
NOTE 2 – REVENUE RECOGNITION (CONTINUED)
Disaggregation of revenue from contracts with customers (continued)
| Franchise | Royalty | Advertising | Other | _ | |
|---|---|---|---|---|---|
| Fees | Fees | Fund Fees | Income | Total | |
| Revenue from contracts with customers | $ 147,358 | $ 1,064,701 | $ 232,493 | $ 18,418 | $ 1,462,970 |
| Revenue from other sources |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, Bens Soft Pretzels's revenue from contracts with customers totaled $1,595,990 in 2024, $1,462,970 in 2023 and $1,203,880 in 2022. This revenue is derived from several sources, including franchise fees, royalty fees, advertising fund fees, and other income. These figures represent the income Bens Soft Pretzels earns directly from its franchisees and other customers through its franchising operations.
For a prospective franchisee, understanding the composition of this revenue is crucial. Franchise fees and royalty fees are directly linked to the number of franchises and their sales performance. Advertising fund fees indicate the collective investment in marketing efforts, while other income may include additional services or products offered by Bens Soft Pretzels. The FDD also breaks down how revenue is recognized, either at a point in time (royalties, advertising, other income) or over time (franchise fees).
It's important to note that these figures do not include revenue from other sources, such as interest income or gains from the sale of assets. While the revenue from contracts with customers provides a clear picture of the core franchising business, a comprehensive financial analysis would also consider these additional income streams. Reviewing these trends over the three years provides insight into the stability and growth of Bens Soft Pretzels's revenue base, which can inform a franchisee's investment decision.
Prospective franchisees should also investigate how these revenues correlate with the expenses Bens Soft Pretzels incurs to support its franchise system. A healthy revenue stream coupled with efficient cost management is indicative of a sustainable and profitable franchise model. By examining these financial statements, potential franchisees can assess the financial health and growth trajectory of Bens Soft Pretzels.