What was the total revenue for Bens Soft Pretzels including advertising fund fees?
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 | 1,333,60 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, in 2024, the total revenue was $1,651,210, which includes $243,430 in advertising fund revenue. In 2023, the total revenue was $1,512,558, including $232,493 in advertising fund revenue. For 2022, the total revenue was $1,249,006, which includes advertising fund revenue of $190,874. These figures represent the brand's gross sales for those years.
For a prospective franchisee, understanding the breakdown of revenue streams is crucial. The figures show that royalty fee revenue makes up the largest portion of the total revenue, followed by advertising fund revenue. This indicates the importance of both brand recognition (supported by the advertising fund) and ongoing operational performance (reflected in royalty fees based on gross sales).
The FDD also provides a percentage breakdown of these revenues. In 2024, advertising fund revenue accounted for 14.74% of total revenue, while in 2023 it was 15.37%, and in 2022 it was 15.28%. This consistent percentage highlights the significance of advertising contributions to the overall financial health of Bens Soft Pretzels.
Reviewing these trends over the three-year period can give potential franchisees insight into the stability and growth of the brand's revenue streams. It's important to note that these figures represent the franchisor's revenue and not the revenue of individual franchise locations. A prospective franchisee should analyze these figures in conjunction with other financial data in the FDD, such as the Item 19 financial performance representations, to get a complete picture of the potential investment.