What is the condition for Bens Soft Pretzels to reduce local advertising requirements?
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.
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, Bens Soft Pretzels may reduce the local advertising requirements for franchisees if they increase the contribution to the Advertising Fund. Currently, franchisees must contribute up to 4% of their gross sales to the Advertising Fund, with the current contribution being 1.5%.
Bens Soft Pretzels has the right to increase the Advertising Fund Fee up to 4% with 90 days' advance written notice. If Bens Soft Pretzels increases the Advertising Fund Fee to 3% or 4%, they will reduce the local advertising requirements accordingly. The goal is to ensure that the franchisee's total required marketing expenditure does not exceed 4% of Gross Sales.
This means that if Bens Soft Pretzels decides to increase the Advertising Fund contribution, they will offset this increase by lowering the amount the franchisee is required to spend on local advertising. This ensures the franchisee's overall marketing expenditure remains capped at 4% of gross sales, providing some financial predictability. Franchisees should be aware of this potential change and factor it into their financial planning.