Can the Bens Soft Pretzels Advertising Fund be used for employing advertising agencies?
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 Fund, with sole discretion over the creative concepts, materials and endorsements used, and the geographic, market and media placement and allocation. Currently the sources of our marketing and advertising programs are our in-house personnel and an external marketing firm. The Advertising Fund may be used to pay the costs of preparing advertising materials and administering national, regional and local advertising programs and public relations activities including creating direct mail and media materials which may include print, television, radio and billboards, formulating advertising and marketing programs, developing and maintaining website and internet based advertising and marketing programs, intranet development and ongoing operation, toll-free locator services, employing advertising agencies, providing brochures and other advertising and marketing materials, and participating in national or regional trade shows.
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's 2025 Franchise Disclosure Document, the Advertising Fund can be used to employ advertising agencies. Bens Soft Pretzels will administer the Advertising Fund for advertising and marketing programs they deem necessary. Franchisees must contribute up to 4% of their Gross Sales to the Advertising Fund, with the current contribution being 1.5%, payable alongside the Royalty Fee. This Advertising Fund Fee is separate from any local marketing requirements. Bens Soft Pretzels has the right to increase the Advertising Fund Fee up to 4% with 90 days' advance written notice. If the fee is increased to 3% or 4%, the local advertising requirements will be reduced accordingly, ensuring the total required marketing expenditure does not exceed 4% of Gross Sales.
The funds can be used to cover various advertising and marketing costs, including preparing advertising materials, administering national, regional, and local advertising programs, and public relations activities. These activities may involve creating direct mail and media materials such as print, television, radio, and billboards. The funds can also be used for formulating advertising and marketing programs, developing and maintaining websites and internet-based advertising and marketing programs, intranet development and ongoing operation, and toll-free locator services.
Bens Soft Pretzels has sole discretion over the creative concepts, materials, endorsements, geographic placement, market placement and media allocation. Currently, the marketing and advertising programs are sourced from in-house personnel and an external marketing firm. The Advertising Fund will be accounted for separately from Bens Soft Pretzels's other funds and will not be used to defray general operating expenses, except for reasonable salaries, administrative costs, and overhead related to administering the Advertising Fund and its programs. These activities include conducting market research, preparing advertising and marketing materials, and collecting and accounting for contributions to the Advertising Fund.