Can the Bens Soft Pretzels Advertising Fund invest surplus funds?
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 may invest surplus funds for future use. Bens Soft Pretzels may spend more or less than the aggregate contribution of all stores in any fiscal year. To cover deficits, the Advertising Fund may borrow from Bens Soft Pretzels or other lenders.
This means that Bens Soft Pretzels has the flexibility to manage the Advertising Fund proactively. If there are excess funds, they can be invested to generate additional revenue for future advertising and marketing efforts. This could potentially lead to more robust campaigns and greater brand awareness for franchisees.
It's important to note that Bens Soft Pretzels will provide an annual report of receipts and disbursements of the Advertising Fund, which may be audited, to franchisees upon written request. Franchisees should regularly review these reports to understand how the Advertising Fund is being managed and how their contributions are being used. Currently, the Advertising Fund is not audited.