Are redeemed coupons included in the Gross Sales calculation for a Bens Soft Pretzels franchise?

According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, gross sales do not include the amount of redeemed coupons. The Royalty Fee and Advertising Fund Fee are calculated as a percentage of Gross Sales. Gross Sales means all sales or revenues, derived directly or indirectly from the Store, including on-premises sales and monies derived at or away from the Store, whether from cash, check, credit and debit card, trade credit or credit transactions, including business interruption insurance proceeds and service charges in lieu of gratuity, but excluding (i) sales taxes collected from customers and paid to the appropriate taxing authority and (ii) the amount of all coupons redeemed at the Store.

This exclusion of redeemed coupons from gross sales is beneficial for a Bens Soft Pretzels franchisee. Since the royalty fee is 6% of Gross Sales and the advertising fund fee is up to 4% of Gross Sales, franchisees will pay less in these fees when customers redeem coupons. This can improve the franchisee's profitability, especially if coupon promotions are a significant part of their marketing strategy.

Franchisees should keep accurate records of all sales and redeemed coupons to ensure accurate calculation of Gross Sales and fees. Bens Soft Pretzels requires fees to be paid weekly via ACH withdrawal. The week ends on Sunday, and the Royalty Fee and Advertising Fund fee are due on Monday the following week, through electronic funds transfer.