What is the condition for Bens Soft Pretzels to collect and contribute a deficiency in required advertising expenditures to the Advertising Fund?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
sing. You must use your best efforts to promote and advertise the Store and participate in any local marketing and promotional programs we establish from time to time. In addition to the Advertising Fund Fee, you are required to spend (i) between $1,000 and $5,000 on approved grand opening advertising and such other amounts that we may require on a monthly or quarterly basis, with the required local marketing requirements not to exceed 2% of Gross Sales. Upon our request, you must provide us with itemization and proof of marketing and an accounting of the monies that you have spent f
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, if a franchisee fails to make the required local advertising expenditure, Bens Soft Pretzels has the right to collect the deficiency and contribute it to the Advertising Fund.
Franchisees are required to spend between $1,000 and $5,000 on approved grand opening advertising, and additional amounts may be required on a monthly or quarterly basis. However, the required local marketing expenditures cannot exceed 2% of gross sales. Franchisees must provide Bens Soft Pretzels with itemization, proof of marketing, and an accounting of the monies spent on approved grand opening advertising upon request.
This means that Bens Soft Pretzels monitors franchisees' local advertising spending and ensures that the required amounts are actually spent on approved advertising. If a franchisee underspends, Bens Soft Pretzels can step in to collect the difference and allocate it to the Advertising Fund, which is used for broader marketing efforts. This provision ensures that all franchisees contribute their fair share to local advertising, which benefits the entire Bens Soft Pretzels system.