Does Bens Soft Pretzels have the right to determine the expenditures of the amounts collected for advertising?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fund; provided, however, we will make a good faith effort to expend such fees in a manner that we determine is in the general best interests of the System. We have the right to determine the expenditures of the amounts collected and the methods of marketing, advertising, media employed and contents, terms and conditions of marketing campaigns and promotional programs. Because of the methods used, we are not required to spend a prorated amount on each store or in each advertising market. We have the right to make disbursements from the Advertising Fund for expenses incurred in connection with the cost of formulating, developing and implementing marketing, advertising and promotional campaigns. The disbursements may include payments to us for the expense of administering the Advertising Fund, including accounting expenses and salaries and benefits paid to our employees engaged in the advertising functions. If requested, we will provide you an annual unaudited statement of the financial condition of the Advertising Fund.
- B. Required Local Expenditures and Grand Opening Advertising. You must use your best efforts to promote and advertise the Store and participate in any local marketing and promotional programs we establish from time to time. In addition to the Advertising Fund Fee, you are required to spend (i) between $1,000 and $5,000 on approved grand opening advertising and such other amounts that we may require on a monthly or quarterly basis, with the required local marketing requirements not to exceed 2% of Gross Sales. Upon our request, you must provide us with itemization and proof of marketing and an accounting of the monies that you have spent f
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, Bens Soft Pretzels has the right to determine how advertising funds are spent. Specifically, Bens Soft Pretzels has the power to decide on marketing methods, advertising strategies, media channels, and the content of marketing campaigns and promotional programs. This gives Bens Soft Pretzels significant control over the advertising and marketing direction of the brand.
Bens Soft Pretzels is not obligated to spend a specific portion of the advertising funds on each individual store or within each advertising market. This allows Bens Soft Pretzels to allocate resources as they see fit, potentially focusing on broader campaigns or markets that they believe will yield the best results. The funds can be used to cover the costs of creating, developing, and executing marketing and advertising campaigns, including payments to Bens Soft Pretzels for administering the Advertising Fund. This includes covering accounting expenses, salaries, and benefits for employees involved in advertising functions.
Franchisees are entitled to an annual unaudited statement of the Advertising Fund's financial condition, if requested. In addition to contributing to the Advertising Fund, franchisees are also required to spend between $1,000 and $5,000 on approved grand opening advertising. Franchisees may also be required to spend additional amounts on a monthly or quarterly basis, but the required local marketing expenses cannot exceed 2% of gross sales. Bens Soft Pretzels has the right to collect any deficiency if a franchisee fails to make the required local advertising expenditure, and contribute it to the Advertising Fund.