Is the Advertising Fund audited by Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
The Advertising Fund will be accounted for separately from our other funds and will not be used to defray any of our general operating expenses, except for reasonable salaries, administrative costs and overhead as we may incur in activities reasonably related to the administration of the Advertising Fund and its advertising and marketing programs including conducting market research, preparing advertising and marketing materials and collecting and accounting for contributions to the Advertising Fund. We may spend in any fiscal year an amount greater or less than the aggregate contribution of all stores to the Advertising Fund in that year and the Advertising Fund may borrow from us or other lenders to cover deficits of the Advertising Fund or cause the Advertising Fund to invest any surplus for future use by the Advertising Fund. A report of receipts and disbursements of the Advertising Fund, which may be audited, will be prepared annually by us and will be furnished to you upon written request. Currently. The Advertising Fund is not audited.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the Advertising Fund is not currently audited. However, Bens Soft Pretzels prepares an annual report of receipts and disbursements of the Advertising Fund, which may be audited. This report is available to franchisees upon written request.
Bens Soft Pretzels manages the Advertising Fund, using it for activities such as market research and creating advertising materials. The company can spend more or less than the total contributions in any given year, and the fund may borrow or invest to cover deficits or surpluses. Bens Soft Pretzels also has the right to incorporate the Advertising Fund or operate it through a separate entity.
While Bens Soft Pretzels aims to develop advertising that benefits all stores, there's no guarantee that the expenditures in any area will be proportional to the contributions from stores in that area. Bens Soft Pretzels can also suspend or terminate the Advertising Fund with proper notice, distributing any unspent funds to themselves, their affiliates, and franchisees based on their contributions over the previous 12 months. Franchisees should be aware that the advertising fund is not currently audited, but the franchisor does provide a report of receipts and disbursements that franchisees can request.