What is the definition of 'Advertising Fund Fee' for Bens Soft Pretzels?
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' 2025 Franchise Disclosure Document, the Advertising Fund Fee is a contribution franchisees must make to the Advertising Fund, which Bens Soft Pretzels uses for advertising and marketing programs. Franchisees must contribute up to 4% of their store's Gross Sales to the Advertising Fund. Currently, the required contribution is 1.5% of Gross Sales, payable along with the Royalty Fee.
The Advertising Fund Fee is separate from any local marketing requirements that Bens Soft Pretzels may impose. Bens Soft Pretzels retains the right to increase the Advertising Fund Fee up to the maximum of 4% of Gross Sales, provided they give franchisees 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, ensuring that the total required marketing expenditure does not exceed 4% of Gross Sales.
Bens Soft Pretzels has sole discretion over the advertising and marketing programs financed by the Advertising Fund, including creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation. The Advertising Fund may cover costs related to preparing advertising materials, administering advertising programs (national, regional, and local), public relations, direct mail, media materials (print, television, radio, and billboards), website and internet-based advertising, intranet development, toll-free locator services, advertising agencies, brochures, and participation in trade shows.