What is the required action for Bens Soft Pretzels franchisees regarding the Advertising Fund Fee?
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 billboa
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, franchisees must contribute to the Advertising Fund. This fund is used for advertising and marketing programs deemed necessary or appropriate by Bens Soft Pretzels. The required contribution is up to 4% of the store's Gross Sales, with the current contribution rate being 1.5%. This fee is paid along with the Royalty Fee as outlined in the Franchise Agreement.
The Advertising Fund Fee is separate from any local marketing requirements that Bens Soft Pretzels franchisees may also have. Bens Soft Pretzels retains the right to increase the Advertising Fund Fee up to the maximum of 4% of Gross Sales. However, Bens Soft Pretzels will provide 90 days' advance written notice before increasing the fee. If the fee is increased 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.
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 sources for these programs are currently in-house personnel and an external marketing firm. The Advertising Fund can cover the costs of preparing advertising materials and administering national, regional, and local advertising programs, as well as public relations activities, including direct mail and media materials such as print, television, radio, and billboards. This means franchisees have limited control over how the advertising funds are spent, as Bens Soft Pretzels makes the ultimate decisions.