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What was the total value of related party receivables for Bens Soft Pretzels in 2022?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer from 2025 FDD Document

p, P.C.

Elkhart, IN June 9, 2025

BEN'S SOFT PRETZELS FRANCHISING CORPORATION BALANCE SHEETS

December 31, 2024, 2023, and 2022

2024 2024 2023 2022
ASSETS
Current assets
Cash and cash equivalents $ 542,890 $ 487,528 $ 466,776
Accounts receivable, net 255,151 116,811 125,116
Franchise fees receivable 15,000 21,000 40,000
Related party receivables 460,463 525,533 497,538
Rebates receivable 18,548 25,

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)

What This Means (2025 FDD)

According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the total value of related party receivables as of December 31, 2022, was $497,538. This figure represents the aggregate amount due to Bens Soft Pretzels from entities related to it through common ownership. These receivables are considered assets on Bens Soft Pretzels' balance sheet, indicating money owed to the company.

Related party receivables can arise from various transactions, such as loans or advances made to related companies, or from services provided to them. In the case of Bens Soft Pretzels, these receivables include royalties, ad fund fees, and gift card receivables, along with balances due for expenses paid by the company on behalf of the related entities. The FDD indicates that these balances are due on demand and do not accrue interest.

For a prospective franchisee, a high level of related party receivables could signal potential risks. It is important to investigate the nature of these related party transactions and assess the creditworthiness of the related parties. While related party transactions are not inherently problematic, they warrant careful scrutiny to ensure they are conducted at arm's length and do not disadvantage the franchisor or its franchisees. Understanding the details behind these receivables can provide a more comprehensive view of Bens Soft Pretzels' financial health and stability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.