Does Bens Soft Pretzels maintain an Advertising Fund?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Agreement, Section 7E).
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- Provide ongoing communication and support and updates to the Manual (Franchise Agreement, Section 6C).
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- Provide technical assistance and support through the telephone (Franchise 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.
The Advertising Fund will be accounted for separately from our other funds and will not be used to defray any of our general operating expenses, except for reasonable salaries, administrative costs and overhead as we may incur in activities reasonably related to the administration of the Advertising Fund and its advertising and marketing programs including conducting market research, preparing advertising and marketing materials and collecting and accounting for contributions to the Advertising Fund.
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's 2025 Franchise Disclosure Document, Bens Soft Pretzels does administer an advertising and marketing fund, referred to as the "Advertising Fund", for advertising and marketing programs deemed necessary or appropriate. Franchisees are required to contribute up to 4% of their store's gross sales to this fund, with the current contribution rate set at 1.5%. This 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% with 90 days' advance written notice. If the fee is increased to 3% or 4%, Bens Soft Pretzels will reduce the local advertising requirements accordingly, ensuring that the total required marketing expenditure does not exceed 4% of gross sales.
The FDD specifies that 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 sources for these programs are currently in-house personnel and an external marketing firm. The Advertising Fund may cover various costs, such as preparing advertising materials, administering national, regional, and local advertising programs, public relations activities, creating direct mail and media materials (print, television, radio, billboards), developing and maintaining websites and internet-based advertising and marketing programs, intranet development, toll-free locator services, employing advertising agencies, providing brochures, and participating in national or regional trade shows.
For the year ending December 31, 2024, the Advertising Fund's expenditures were allocated as follows: 1.58% on production, 23.66% on media placement, 29.72% on administrative expenses, and 6.54% on other uses, including dues, subscriptions, meals, entertainment, meetings, training, supplies, travel, and lodging. Bens Soft Pretzels states that currently, no part of the Advertising Fund is used principally to solicit new franchise sales. This information provides transparency regarding how the advertising fees are utilized, which can be a key consideration for prospective franchisees assessing the value of their contribution to the fund.