What was the total advertising fund fees revenue for Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ETZELS FRANCHISING CORPORATION STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | } | 2022 | } | ||
|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | |
| Revenues | ||||||
| Initial franchise fee revenue | $ 120,792 | 7.32 | $ 147,358 | 9.74 | $ 128,065 | 10.25 |
| Royalty fee revenue | 1,202,010 | 72.79 | 1,064,701 | 70.39 | 877,461 | 70.26 |
| Advertising fund revenue | 243,430 | 14.74 | 232,493 | 15.37 | 190,874 | 15.28 |
| Other incom |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the advertising fund revenue for the years 2022, 2023, and 2024 are detailed in the financial statements. In 2022, the advertising fund fees totaled $190,874. This increased to $232,493 in 2023. For the year 2024, Bens Soft Pretzels reported advertising fund revenue of $243,430. These fees are collected from franchisees and are earmarked for advertising and promotional activities to benefit the entire Bens Soft Pretzels brand.
These advertising fund fees are based on a percentage of each bakery's gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards. Bens Soft Pretzels recognizes this revenue at a point in time when it is earned. Any advertising fund fees that are earned but not yet received by the end of the year are recorded as a receivable.
As a prospective franchisee, it's important to understand how these advertising funds are used and to review the advertising strategies employed by Bens Soft Pretzels. Franchisees may also want to inquire about the possibility of being reimbursed for local advertising expenses they incur, as mentioned in the FDD. Understanding the advertising fund's performance and its impact on brand awareness and sales can help a franchisee assess the value and effectiveness of this contribution.