When are advertising fund fees due for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fund Fee Revenue – Franchises are also required to pay the Company ad fund fees based on a percentage of its gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards. In return for these fees, the Company advertises on behalf of the brand as a whole. Franchises can also apply for reimbursement of general advertising expenses that they directly incur. Revenue is recognized on a weekly basis based on the prior week's sales. A receivable is recorded at year end based on average sales per day for the week that spans year end. The adoption of ASU No. 2014-09 did not result in a change to how advertising fee revenue is recognized. Advertising fund fees are due on a weekly basis.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, franchisees are required to pay advertising fund fees on a weekly basis. These fees are calculated as a percentage of the franchise's gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards.
The FDD specifies that Bens Soft Pretzels recognizes advertising fund fee revenue on a weekly basis, based on the prior week's sales. At the end of the year, a receivable is recorded based on the average sales per day for the week that spans the year's end. This indicates that franchisees are expected to remit these fees regularly to support the brand's advertising efforts.
This weekly payment schedule is typical in the franchise industry, as it allows franchisors to maintain a consistent revenue stream for marketing and advertising activities. For a prospective Bens Soft Pretzels franchisee, this means budgeting for weekly advertising fund fee payments in addition to other ongoing costs such as royalties and rent.