Who designates the amount a Bens Soft Pretzels franchisee must contribute to the advertising cooperative?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
If established, you must contribute to the advertising cooperative the amount designated by the cooperative.
Each BEN'S SOFT PRETZELS store, including those operated by us or our affiliates within a designated local advertising area (except Special Sites) is a member of the local advertising cooperative and each store has one vote on all matters requiring a vote.
Each advertising cooperative will be required to adopt governing bylaws that meet our approval.
You must obtain our written approval of all promotional and advertising materials, creative execution and media schedules prior to their implementation.
Each advertising cooperative will be required to prepare annual financial statements, which must be made available to all members of the cooperative and to us upon request.
Also, each advertising cooperative must submit to us its meeting minutes upon our request. We have the right to require advertising cooperatives to be formed, changed, dissolved or merged.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, if a local advertising market is designated, franchisees must participate in and contribute to the cooperative advertising and marketing programs. The amount that each Bens Soft Pretzels franchisee must contribute to the advertising cooperative is designated by the cooperative itself. Each Bens Soft Pretzels store, with the exception of Special Sites, including those operated by Bens Soft Pretzels or its affiliates within a designated local advertising area, is a member of the local advertising cooperative and has one vote on matters requiring a vote.
Each advertising cooperative will be required to adopt governing bylaws that meet Bens Soft Pretzels' approval. Franchisees must obtain Bens Soft Pretzels' written approval of all promotional and advertising materials, creative execution, and media schedules before implementation. Each advertising cooperative will be required to prepare annual financial statements, which must be made available to all members of the cooperative and to Bens Soft Pretzels upon request.
Additionally, each advertising cooperative must submit its meeting minutes to Bens Soft Pretzels upon request. Bens Soft Pretzels retains the right to require advertising cooperatives to be formed, changed, dissolved, or merged. This means that while the cooperative sets the contribution amount, Bens Soft Pretzels maintains significant oversight and control over the cooperative's operations and structure.