How are the Royalty Fee and Advertising Fund fee paid 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 Amounts due will be withdrawn by ACH (attached as a Schedule to the Franchise Agreement) from your designated bank account. Except as described above, all fees are uniformly imposed, although we may reduce, defer, or waive such fees, if and when we determine that it is warranted by a unique or compelling situation.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the Royalty Fee and Advertising Fund Fee are both payable weekly. The Royalty Fee is 6% of Gross Sales, while the Advertising Fund Fee is up to 4% of Gross Sales, but is currently 1.5% of Gross Sales. Gross Sales includes 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. The franchisor has the right to increase the Advertising Fund Fee up to 4% upon 90 days' advance written notice. If the Advertising Fund Fee is increased to 3% or 4%, Bens Soft Pretzels will reduce the local advertising requirements accordingly.
The week ends on Sunday, and both the Royalty Fee and Advertising Fund Fee are due on Monday the following week. Payment is made through electronic funds transfer. Amounts due will be withdrawn by ACH from your designated bank account. These fees apply to a Traditional Store, Captive Venue Store, or Mobile Store.
It is important to note that these fees are non-refundable. While the fees are uniformly imposed, Bens Soft Pretzels may reduce, defer, or waive such fees if they determine it is warranted by a unique or compelling situation. Franchisees should be aware of these payment terms and ensure they have sufficient funds available for the weekly electronic transfers to avoid any potential penalties or disruptions to their franchise agreement.