When are the Royalty Fee and Advertising Fund fee due for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Gross Sales. | Payable weekly. | See Notes 1 and 7. |
| Advertising Fund Fee | Up to 4% of Gross Sales. Currently, 1.5% of Gross Sales. | Payable weekly. | See Notes 1, 2 and 7. |
- (1) "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.
- (2) 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.
- (7) Currently, the week ends on Sunday, and the Royalty Fee and Advertising Fund fee are due on Monday the following week, through electronic funds transfer. Unless otherwise noted, the fees noted above apply to a Traditional Store, Captive Venue Store or Mobile Store. The above fees are non-refundable and imposed and collected by us. Amounts due will be withdrawn by ACH (attached as a Schedule to the Franchise Agreement) from your designated bank account.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, both the Royalty Fee and the Advertising Fund fee are payable weekly. More specifically, the week ends on Sunday, and both fees are due on Monday of the following week. These payments are to be made through electronic funds transfer.
The Royalty Fee is 6% of Gross Sales, while the Advertising Fund Fee is up to 4% of Gross Sales, but is currently set at 1.5%. Gross Sales include all 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. Gross Sales excludes sales taxes collected from customers and paid to the appropriate taxing authority and the amount of all coupons redeemed at the store.
It's important to note that Bens Soft Pretzels has the right to increase the Advertising Fund Fee up to 4% with 90 days' advance written notice. If the Advertising Fund Fee is increased to 3% or 4%, the local advertising requirements will be reduced accordingly. All fees apply to Traditional Stores, Captive Venue Stores, and Mobile Stores, and are non-refundable. Amounts due will be withdrawn by ACH from the franchisee's designated bank account.