What was the total revenue from royalty fees 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 incom |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the company's revenue from royalty fees was $1,202,010 in 2024, $1,064,701 in 2023, and $877,461 in 2022. This indicates a generally increasing trend in royalty revenue for Bens Soft Pretzels over these three years.
For a prospective franchisee, royalty fees represent an ongoing expense based on a percentage of their gross sales. These fees are collected weekly from the bakeries. The FDD specifies that royalties are calculated from each bakery's gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards.
The consistent growth in royalty revenue suggests that, on average, franchisee sales are increasing, the number of franchise locations is growing, or a combination of both. This could be a positive indicator of the brand's performance and market acceptance. A potential franchisee should investigate the factors driving this growth and ensure they understand how their sales performance will impact the royalties they pay to Bens Soft Pretzels.
It is important to note that while the franchisor recognizes royalty revenue at a point in time when it is earned, a receivable is recorded at year-end for royalties earned but not yet received. This is a standard accounting practice, but franchisees should be aware of the timing of royalty payments and how they are accounted for by Bens Soft Pretzels.