What are the sources of Bens Soft Pretzels' marketing and advertising programs?
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 billboards, formulating advertising and marketing programs, developing and maintaining website and internet based advertising and marketing programs, intranet development and ongoing operation, toll-free locator services, employing advertising agencies, providing brochures and other advertising and marketing materials, and participating in national or regional trade shows.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the sources of marketing and advertising programs are the company's in-house personnel and an external marketing firm. Bens Soft Pretzels administers an advertising and marketing fund, called the "Advertising Fund", which is used for advertising and marketing programs. Franchisees must contribute up to 4% of their gross sales to this fund, with the current contribution rate being 1.5%. This Advertising Fund fee is separate from any local marketing requirements.
The Advertising Fund is used to cover various costs, including preparing advertising materials, administering advertising programs (national, regional, and local), and public relations activities. These activities may involve creating direct mail and media materials (print, television, radio, and billboards), formulating advertising and marketing programs, developing and maintaining websites and internet-based advertising, intranet development, toll-free locator services, employing advertising agencies, providing brochures and other marketing materials, and participating in trade shows.
Bens Soft Pretzels retains sole discretion over the creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation of advertising and marketing programs. This means that while franchisees contribute to the Advertising Fund, Bens Soft Pretzels ultimately decides how those funds are spent and what marketing strategies are employed. Franchisees are also required to spend 2% of their gross sales on local advertising, and must spend between $1,000 and $5,000 on local advertising, marketing, and promotion within three months of opening their store.