What is the obligation of Bens Soft Pretzels regarding the Advertising Fund report?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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. We may spend in any fiscal year an amount greater or less than the aggregate contribution of all stores to the Advertising Fund in that year and the Advertising Fund may borrow from us or other lenders to cover deficits of the Advertising Fund or cause the Advertising Fund to invest any surplus for future use by the Advertising Fund. A report of receipts and disbursements of the Advertising Fund, which may be audited, will be prepared annually by us and will be furnished to you upon written request. Currently. The Advertising Fund is not audited.
We will have the right to cause the Advertising Fund to be incorporated or operated through an entity separate from us at the time as we deem appropriate, and the entity will have the same rights and duties as we do. Although we will endeavor to utilize the Advertising Fund to develop advertising and marketing materials and programs, and to place advertising that will benefit all stores, we undertake no obligation to ensure that expenditures by the Advertising Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Advertising Fund by stores operating in that geographic area or that any store will benefit directly or in proportion to its contribution to the Advertising Fund from the development of advertising and marketing materials or the placement of advertising.
We will have the right to suspend contributions to and operation of the Advertising Fund for one or more periods that we determine to be appropriate and the right to terminate the Advertising Fund upon 30 days written notice to you. All unspent monies on the date of termination will be distributed to us, our affiliates and our franchisees in proportion to their respective contributions to the Advertising Fund during the preceding 12 month period. We will have the right to reinstate the Advertising Fund upon the same terms and conditions set forth in the Franchise Agreement upon 30 days prior written notice to you.
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 will prepare an annual report of receipts and disbursements of the Advertising Fund. This report may be audited, and Bens Soft Pretzels will furnish it to franchisees upon written request. Currently, the Advertising Fund is not audited.
This means that as a Bens Soft Pretzels franchisee, you have the right to request a report detailing how the Advertising Fund is being managed and spent. The purpose of this fund is to support advertising and marketing programs for the benefit of all Bens Soft Pretzels stores. While the report is prepared annually, it is not currently audited, meaning its accuracy is not verified by an independent third party.
It's important to note that Bens Soft Pretzels has the right to suspend contributions to and operation of the Advertising Fund, or even terminate it with 30 days' written notice to franchisees. If the Advertising Fund is terminated, any unspent monies will be distributed to Bens Soft Pretzels, its affiliates, and its franchisees in proportion to their contributions over the preceding 12-month period. Franchisees should be aware of these conditions, as they could impact the availability of advertising support and the use of advertising fees.