What was the trade-in allowance for Bens Soft Pretzels in the year prior to the most recent?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Net change in cash and cash equivalents | $ 55,362 | $ | 20,752 | $ (180,288) |
|---|---|---|---|---|
| Cash and cash equivalents, beginning of year | 487,528 | 466,776 | 647,064 | |
| Cash and cash equivalents, end of year | 542,890 | $ | 487,528 | $ 466,776 |
| Supplemental disclosure of cash flow information | ||||
| Cash paid during the year for interest | $ 16,409 | $ | 14,720 | $ 1,405 |
| Cash paid during the year for taxes | $ 573 | $ | 463 | $ 210 |
| Schedules of noncash investing and financing transactions Acquisitions of equipment | ||||
| Cost of equipment Trade-in allowance | $ 85,360 (33,000) | $ | 329,093 | $ 101,578 |
| Cash payment for equipment | $ 52,36 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the statements of cash flows include details on equipment acquisitions, including trade-in allowances. The most recent year for which complete audited financial statements are available is 2024. Therefore, the year prior to the most recent would be 2023.
In 2023, Bens Soft Pretzels did not record a trade-in allowance. The cost of equipment acquired in 2023 was $329,093, with no corresponding trade-in allowance listed. This means that Bens Soft Pretzels did not reduce the cost of new equipment by trading in old equipment during that year, according to these financial statements.
For a prospective franchisee, this information is useful for understanding how Bens Soft Pretzels manages its capital expenditures and asset replacements. The absence of a trade-in allowance in 2023 could indicate a preference for selling used equipment outright or other strategies for asset disposal. It is important to note that these figures reflect the franchisor's activities and not necessarily those of individual franchisees.