What amount of advertising fund fees did Bens Soft Pretzels collect?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
2024, 2023, and 2022
NOTE 2 – REVENUE RECOGNITION (CONTINUED)
Disaggregation of revenue from contracts with customers (continued)
| Franchise | Royalty | Advertising | Other | _ | |
|---|---|---|---|---|---|
| Fees | Fees |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, Bens Soft Pretzels collected $232,493 in advertising fund fees in 2022. These fees are collected from franchisees based on a percentage of their gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards. The revenue is recognized when earned, which is considered to be at a point in time. Any advertising fund fees earned but not yet received are recorded as a receivable at the end of the year.
Franchisees should understand that these advertising fees are used by Bens Soft Pretzels to advertise on behalf of the entire brand. Franchisees can also apply for reimbursement of general advertising expenses that they directly incur. This system is typical in franchising, where collective advertising benefits all locations.
The FDD also details how Bens Soft Pretzels recognizes revenue from these fees. Revenue is recognized on a weekly basis based on the prior week's sales. This consistent and transparent approach to revenue recognition can provide franchisees with confidence in how their contributions are managed and accounted for.