When is the Advertising Fund Fee due for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Gross Sales. | Payable weekly. | See Notes 1 and 7. |
| Advertising Fund Fee | Up to 4% of Gross Sales. Currently, 1.5% of Gross Sales. | Payable weekly. | See Notes 1, 2 and 7. |
- (1) "Gross Sales" means all sales or revenues, derived directly or indirectly from the Store, including on-premises sales and monies derived at or away from the Store, whether from cash, check, credit and debit card, trade credit or credit transactions, including business interruption insurance proceeds and service charges in lieu of gratuity, but excluding (i) sales taxes collected from customers and paid to the appropriate taxing authority and (ii) the amount of all coupons redeemed at the Store.
- (2) We have the right to increase the Advertising Fund Fee up to 4% upon 90 days' advance written notice, although if we increase the Advertising Fund Fee to 3% or 4%, we will reduce the local advertising requirements accordingly.
- (7) Currently, the week ends on Sunday, and the Royalty Fee and Advertising Fund fee are due on Monday the following week, through electronic funds transfer.
Unless otherwise noted, the fees noted above apply to a Traditional Store, Captive Venue Store or Mobile Store. The above fees are non-refundable and imposed and collected by us. Amounts due will be withdrawn by ACH (attached as a Schedule to the Franchise Agreement) from your designated bank account.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the Advertising Fund Fee is payable weekly. Specifically, the week ends on Sunday, and the Advertising Fund Fee is due on Monday of the following week through electronic funds transfer. The fee is up to 4% of Gross Sales, but is currently 1.5% of Gross Sales. Gross Sales includes all sales or revenues derived directly or indirectly from the store, including on-premises sales and monies derived at or away from the store, whether from cash, check, credit and debit card, trade credit or credit transactions, including business interruption insurance proceeds and service charges in lieu of gratuity, but excluding (i) sales taxes collected from customers and paid to the appropriate taxing authority and (ii) the amount of all coupons redeemed at the Store.
This means that each week, a Bens Soft Pretzels franchisee must calculate their gross sales for the previous week (ending Sunday) and remit 1.5% of that amount to the Advertising Fund by the following Monday. This payment is made via electronic funds transfer. The franchisor has the right to increase the Advertising Fund Fee up to 4% upon 90 days' advance written notice, although if Bens Soft Pretzels increases the Advertising Fund Fee to 3% or 4%, they will reduce the local advertising requirements accordingly.
It is important for prospective franchisees to understand how the Advertising Fund Fee is calculated and when it is due, as it represents an ongoing expense that will impact their profitability. Franchisees should also be aware that Bens Soft Pretzels can increase this fee with 90 days' notice, up to a maximum of 4% of gross sales. This is a fairly standard practice in franchising, as advertising funds are crucial for brand development and marketing efforts. The funds are non-refundable and imposed and collected by Bens Soft Pretzels. Amounts due will be withdrawn by ACH from your designated bank account.