What was the range of advertising fund fees collected by Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
2024, 2023, and 2022
NOTE 2 – REVENUE RECOGNITION (CONTINUED)
Disaggregation of revenue from contracts with customers (continued)
| Franchise | Royalty | Advertising | Other | _ | |
|---|---|---|---|---|---|
| Fees | Fees | Fund Fees | Income | Total | |
| Revenue from contracts with customers | $ 147,358 | $ 1,064,701 | $ 232,493 | $ 18,418 | $ 1,462,970 |
| Revenue from other sources | - | - | - | 49,588 | 49,588 |
| $ 147,358 | $ 1,064,701 | $ 232,493 | $ 68,006 | $ 1,512,558 | |
| Franchise | Royalty | Advertising | Other | ||
| Fees | Fees | Fund Fees | Income | Total | |
| Revenue recognized at a point in time | $ - | $ 1,064,701 | $ 232,493 | $ 18,418 | $ 1,315,612 |
| Revenue recognized over time | 147,358 | 147,358 | |||
| Revenue from contracts with customers | $ 147,358 | $ 1,064,701 | $ 232,493 2022 2022 | $ 18,418 | $ 1,462,970 |
| Franchise | Royalty | Advertising | Other | ||
| Franchise Fees | Royalty Fees | Other Income | Total | ||
| Revenue from contracts with customers | Advertising | Total $ 1,203,880 | |||
| Revenue from contracts with customers Revenue from other sources | Fees | Fees | Advertising Fund Fees | Income | |
| Fees | Fees | Advertising Fund Fees | Income $ 7,480 | $ 1,203,880 | |
| Fees $ 128,065 | Fees $ 877,461 | Advertising Fund Fees $ 190,874 | Income $ 7,480 45,126 | $ 1,203,880 45,126 | |
| Fees $ 128,065 - $ 128,065 | Fees $ 877,461 - $ 877,461 | Advertising Fund Fees $ 190,874 - $ 190,874 | $ 7,480 45,126 $ 52,606 | $ 1,203,880 45,126 | |
| Fees $ 128,065 - $ 128,065 Franchise | Fees $ 877,461 $ 877,461 Royalty | Advertising Fund Fees $ 190,874 - $ 190,874 Advertising | Income 7,480 45,126 52,606 Other | $ 1,203,880 45,126 $ 1,249,006 | |
| Revenue from other sources | Fees $ 128,065 | Fees $ 877,461 - $ 877,461 Royalty Fees | Advertisin |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, Bens Soft Pretzels' advertising fund fees revenue varied over three years. In 2022, the advertising fund fees totaled $190,874. For 2023, the advertising fund fees increased to $232,493.
These advertising fees are collected from Bens Soft Pretzels franchisees based on a percentage of their gross sales, excluding sales tax, pre-approved coupons, and loyalty reward redemptions. The funds are intended for advertising the brand as a whole, and franchisees can apply for reimbursement of general advertising expenses they incur directly.
The FDD states that Bens Soft Pretzels recognizes this revenue when it is earned, which is at a point in time, and collects advertising fund fees weekly from its bakeries. A receivable is recorded at year-end for any advertising fund fees that have been earned but not yet received. This consistent collection and accounting practice ensures that advertising efforts are continuously funded and aligned with sales performance.
Prospective franchisees should understand that these advertising fees are a mandatory, ongoing expense tied to their sales. While the fees contribute to brand-wide advertising, franchisees should inquire about the specific advertising strategies and how they can leverage these funds for local marketing initiatives.