How much must a Bens Soft Pretzels franchisee contribute to an advertising cooperative?
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 the 2025 Bens Soft Pretzels Franchise Disclosure Document, franchisees may be required to participate in and contribute to a local advertising cooperative if Bens Soft Pretzels designates a local advertising market. The amount a franchisee must contribute is determined by the cooperative itself. Each Bens Soft Pretzels store, including those operated by the franchisor or its affiliates (excluding Special Sites), is a member of the local advertising cooperative and has one vote on all matters.
The advertising cooperative is required to adopt governing bylaws that meet Bens Soft Pretzels' approval. Franchisees must also obtain written approval from Bens Soft Pretzels for all promotional and advertising materials, creative execution, and media schedules before implementation.
Each advertising cooperative must prepare annual financial statements, which must be made available to all members of the cooperative and to Bens Soft Pretzels upon request. Additionally, the 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, giving them significant control over local advertising efforts.