When are the Costs and Attorneys' Fees due for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
OTHER FEES**
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Gross Sales. | Payable weekly. | See Notes 1 and 7. |
| Advertising Fund Fee | Up to 4% of Gross Sales. Currently, 1.5% of Gross Sales. | Payable weekly. | See Notes 1, 2 and 7. |
| Ongoing Training | Currently $500 per day plus cost of transportation, lodging and other expenses. | As incurred. | See Note 3 |
| Additional Assistance | Additional assistance is currently $500 per day plus cost of transportation, lodging and other expenses. | As incurred. | See Note 4 and Item 12. |
| Transfer Fee | One-half of the then current initial franchise fee for a non-discounted first franchise; |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, Costs and Attorneys' Fees will vary under circumstances and are due as incurred. These fees are payable upon a franchisee's failure to comply with the Franchise Agreement. This means that a Bens Soft Pretzels franchisee will only be charged these fees if they violate the terms of their agreement with the franchisor, and the amount will depend on the specific situation and legal costs incurred.
This type of fee structure is relatively standard in franchising. It is designed to protect the franchisor from losses or legal expenses resulting from a franchisee's non-compliance. The fact that the fees are "as incurred" means that Bens Soft Pretzels franchisees will need to be diligent in adhering to the Franchise Agreement to avoid potentially unpredictable and variable costs.
Prospective Bens Soft Pretzels franchisees should carefully review the Franchise Agreement to understand what constitutes non-compliance and what actions could trigger these fees. Understanding these potential costs upfront is crucial for budgeting and managing the financial risks associated with operating a Bens Soft Pretzels franchise.