What was the total value of related party receivables for Bens Soft Pretzels in 2022?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer 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.