What are some examples of costs that the Bens Soft Pretzels Advertising Fund may be used to pay for?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Agreement, Section 6C).
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 is used for advertising and marketing programs deemed necessary or appropriate by Bens Soft Pretzels. Franchisees are required to contribute up to 4% of their Gross Sales to this fund, although the current contribution is 1.5%. This fee is separate from any local marketing requirements. Bens Soft Pretzels has the right to increase the Advertising Fund Fee up to 4% upon 90 days' advance written notice. If the fee is increased to 3% or 4%, the local advertising requirements will be reduced accordingly, ensuring that the total required marketing expenditure does not exceed 4% of Gross Sales.
The Advertising Fund gives Bens Soft Pretzels sole discretion over the creative concepts, materials, endorsements, geographic placement, market placement, and media allocation used in advertising and marketing programs. The sources for these programs currently include in-house personnel and an external marketing firm.
Specifically, the Advertising Fund may cover costs related to preparing advertising materials, administering national, regional, and local advertising programs, and public relations activities. This includes creating direct mail and media materials (print, television, radio, and billboards), formulating advertising and marketing programs, developing and maintaining websites 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. For the year ending December 31, 2024, the Advertising Fund was spent as follows: 1.58% on production, 23.66% on media placement, 29.72% on administrative expenses and 6.54% on other uses (dues, subscriptions, meals, entertainment, meetings, training, supplies, travel and lodging).