What was the total royalty fees revenue 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the royalty fee revenue for the years 2022, 2023, and 2024 were specifically detailed. In 2024, the royalty fee revenue amounted to $1,202,010, representing 72.79% of the total revenue. In 2023, the royalty fee revenue was $1,064,701, constituting 70.39% of the total revenue. For 2022, the royalty fee revenue totaled $877,461, which was 70.26% of the total revenue.
These figures illustrate the significance of royalty fees as a primary revenue stream for Bens Soft Pretzels. The consistent percentage of royalty fees relative to total revenue, around 70%, indicates a stable and predictable income source for the franchisor. This stability can be reassuring for potential franchisees, as it reflects a well-established business model.
For a prospective franchisee, understanding these royalty fee figures is crucial. It highlights the ongoing financial obligation to Bens Soft Pretzels based on a percentage of gross sales. Franchisees should carefully consider their projected sales and profit margins to ensure they can comfortably meet these royalty obligations while maintaining a profitable business. It's also important to note that these royalty fees are collected weekly from the bakeries, signifying a consistent and ongoing expense for the franchisee.
Furthermore, the FDD specifies that royalty fees are calculated as a percentage of gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards. This clarification is important for franchisees to accurately calculate and remit their royalty payments. The consistent growth in royalty fee revenue from 2022 to 2024 suggests a healthy and expanding franchise system, which could be an attractive factor for potential investors.