What happens if a Bens Soft Pretzels advertising cooperative is established?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Cooperatives.
We have the right to designate local advertising markets and if designated, you must participate in and contribute to the cooperative advertising and marketing programs in your designated local advertising market.
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 Bens Soft Pretzels's 2025 Franchise Disclosure Document, if the company designates local advertising markets, franchisees must participate in and contribute to cooperative advertising and marketing programs within their designated area. Franchisees are required to contribute the amount designated by the cooperative. Each Bens Soft Pretzels store, including those operated by the company or its affiliates (excluding Special Sites), is a member of the local advertising cooperative and has one vote on matters requiring a vote.
The advertising cooperative must adopt governing bylaws approved by Bens Soft Pretzels. Franchisees must obtain written approval from Bens Soft Pretzels for all promotional and advertising materials, creative execution, and media schedules before implementation. The advertising cooperative is required to prepare annual financial statements, which must be available to all members and to Bens Soft Pretzels upon request.
Additionally, the advertising cooperative must submit 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 gives Bens Soft Pretzels significant control over local advertising efforts and ensures that all advertising aligns with the brand's overall marketing strategy. Franchisees should be prepared to actively participate in and contribute financially to these cooperatives if they are established in their market.