What happens if Bens Soft Pretzels increases the Advertising Fund Fee to 3% or 4%?
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.
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, franchisees are currently required to contribute up to 4% of gross sales to the Advertising Fund, but are currently only paying 1.5%. Bens Soft Pretzels has the right to increase the Advertising Fund Fee up to 4% of gross sales. Franchisees must receive 90 days advance written notice of any increase.
If Bens Soft Pretzels increases the Advertising Fund Fee to 3% or 4%, they will reduce the local advertising requirements accordingly. This ensures that the total required marketing expenditure for a franchisee does not exceed 4% of their Gross Sales. This means that if the advertising fund contribution increases, the amount the franchisee is required to spend on local advertising will decrease by a corresponding amount.
This policy protects franchisees from a situation where they are forced to drastically increase their overall marketing spending. Instead, Bens Soft Pretzels balances the advertising contributions between the national Advertising Fund and the local store's advertising efforts, maintaining a consistent total marketing expenditure cap of 4% of Gross Sales.