What is the total revenue for Bens Soft Pretzels including revenue from other sources?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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 | - | - | - | 49,588 | 49,588 |
| $ 147,358 | $ 1,064,701 | $ 232,493 | $ 68,006 | $ 1,512,558 | |
| Franchise | Royalty | Advertising | Other | ||
| Fees | Fees | Fund Fees | Income | Total | |
| Revenue recognized at a point in time | $ - | $ 1,064,701 | $ 232,493 | $ 18,418 | $ 1,315,612 |
| Revenue recognized over time | 147,358 | 147,358 | |||
| Revenue from contracts with customers | $ 147,358 | $ 1,064,701 | $ 232,493 2022 2022 | $ 18,418 | $ 1,462,970 |
| Franchise | Royalty | Advertising | Other | ||
| Franchise Fees | Royalty Fees | Other Income | Total | ||
| Revenue from contracts with customers | Advertising | Total $ 1,203,880 | |||
| Revenue from contracts with customers Revenue from other sources | Fees | Fees | Advertising Fund Fees | Income | |
| Fees | Fees | Advertising Fund Fees | Income $ 7,480 | $ 1,203,880 | |
| Fees $ 128,065 | Fees $ 877,461 | Advertising Fund Fees $ 190,874 | Income $ 7,480 45,126 | $ 1,203,880 45,126 | |
| Fees $ 128,065 - $ 128,065 | Fees $ 877,461 - $ 877,461 | Advertising Fund Fees $ 190,874 - $ 190,874 | $ 7,480 45,126 $ 52,606 | $ 1,203,880 45,126 | |
| Fees $ 128,065 - $ 128,065 Franchise | Fees $ 877,461 $ 877,461 Royalty | Advertising Fund Fees $ 190,874 - $ 190,874 Advertising | Income 7,480 45,126 52,606 Other | $ 1,203,880 45,126 $ 1,249,006 | |
| Revenue from other sources | Fees $ 128,065 | Fees $ 877,461 - $ 877,461 Royalty Fees | Advertising Fund Fees $ 190,874 $ 190,874 Advertising Fund Fees | Income $ 7,480 45,126 $ 52,606 Other Income | $ 1,203,880 45,126 $ 1,249,006 Total |
Performance obligations
Performance obligations related to royalties, advertising fund fees, and other income, are satisfied at a point in time which signifies when the revenue is earned and recognized. Royalties and advertising fund fees are collected weekly from the bakeries.
Management has determined that the opening of a franchise is when substantially all of the initial services required by the franchise agreement are completed and when the related benefits to be derived from the rights provided by the franchise agreement begin. Therefore, the single performance obligation of providing a right to use the intellectual property over a period of time begins with the opening of a franchise and is satisfied evenly over the initial term of the franchise agreement. Franchise fees are typically required to be paid upon the signing of a franchise agreement. However, at times, management allows franchise owners to pay over a period of time. In these instances, revenue is still recognized in accordance with the revenue recognition policy and a receivable is recorded for the unpaid portion.
December 31, 2024, 2023, and 2022
NOTE 2 – REVENUE RECOGNITION (CONTINUED)
Performance obligations (continued)
As a result, there is not a significant financing component related to these receivables. Since fees are typically due at the time of signing the franchise agreement, a portion of these initial franchise fee revenue is deferred to future periods. The deferred portion of this revenue totaled $332,002, $300,294, and $347,652 as of December 31, 2024, 2023, and 2022, respectively.
Variable consideration
The Company collects royalties from each franchise bakery.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the company's total revenue, including revenue from other sources, was detailed for the fiscal years ending December 31, 2024, 2023, and 2022. In 2024, the total revenue was $1,512,558, which includes $147,358 from franchise fees, $1,064,701 from royalty fees, $232,493 from advertising fund fees, and $68,006 from other income.
For the year 2023, Bens Soft Pretzels' total revenue was $1,651,210. This amount is composed of $120,792 in franchise fees, $1,202,010 in royalty fees, $243,430 in advertising fund fees, and $84,978 in other income.
In 2022, the total revenue for Bens Soft Pretzels was $1,249,006. This includes $128,065 from franchise fees, $877,461 from royalty fees, $190,874 from advertising fund fees, and $52,606 from other income. These figures provide a detailed breakdown of the company's revenue streams over the three-year period, which can be useful for prospective franchisees in understanding the financial performance and revenue sources of Bens Soft Pretzels.