How is the Advertising Fund Fee paid by Bens Soft Pretzels franchisees?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
We will administer an advertising and marketing fund (the "Advertising Fund") for the advertising and marketing programs as we may deem necessary or appropriate. You must contribute to the Advertising Fund up to 4% (currently 1.5%) of the Gross Sales of your Store, as determined by us, payable together with the Royalty Fee due under the Franchise Agreement. The Advertising Fund Fee is separate from any local marketing requirements. 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 such that your total required marketing expenditure does not exceed 4% of Gross Sales.
We will direct all advertising and marketing programs financed by the Advertising F
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, franchisees must contribute to the Advertising Fund. This contribution is up to 4% of the store's Gross Sales, but is currently set at 1.5%. The payment is made together with the Royalty Fee, as outlined in the Franchise Agreement. This Advertising Fund Fee is separate from any local marketing requirements that Bens Soft Pretzels may impose.
Bens Soft Pretzels retains the right to increase the Advertising Fund Fee up to the maximum of 4% of Gross Sales. However, they must provide franchisees with 90 days' advance written notice before implementing such an increase. If Bens Soft Pretzels increases the fee to 3% or 4%, they will reduce the local advertising requirements accordingly, ensuring that the total required marketing expenditure does not exceed 4% of Gross Sales.
The Advertising Fund is used to finance advertising and marketing programs deemed necessary or appropriate by Bens Soft Pretzels. The fund is managed separately from other funds and is not used for general operating expenses, except for reasonable salaries, administrative costs, and overhead related to administering the fund and its programs. This includes activities such as market research, preparing advertising materials, and collecting and accounting for contributions. Bens Soft Pretzels may spend more or less than the aggregate contribution of all stores in any fiscal year and may borrow or invest funds to cover deficits or surpluses.