What is the name of the advertising and marketing fund administered by Bens Soft Pretzels?
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.
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 the 2025 Bens Soft Pretzels Franchise Disclosure Document, the advertising and marketing fund administered by Bens Soft Pretzels is referred to as the "Advertising Fund". Franchisees are required to contribute to this fund, with contributions going towards advertising and marketing programs deemed necessary or appropriate by Bens Soft Pretzels. These programs are designed to promote the Bens Soft Pretzels brand and support its franchisees.
The FDD specifies that franchisees must contribute up to 4% of their store's gross sales to the Advertising Fund. Currently, the required contribution is 1.5% of gross sales, but Bens Soft Pretzels retains the right to increase this contribution up to the 4% maximum with 90 days' advance written notice. If the contribution is raised 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. This fund is separate from any local marketing requirements that franchisees must also fulfill.
Bens Soft Pretzels has sole discretion over the advertising and marketing programs financed by the Advertising Fund, including creative concepts, materials, endorsements, and the placement and allocation of advertising. The fund may cover various costs, such as preparing advertising materials, administering national, regional, and local advertising programs, public relations activities, website development, and employing advertising agencies. The Advertising Fund will be accounted for separately from Bens Soft Pretzels' other funds and will not be used to defray general operating expenses, except for reasonable salaries, administrative costs, and overhead related to the administration of the Advertising Fund and its advertising and marketing programs.