What was the total revenue from advertising fund fees 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 the 2025 Bens Soft Pretzels Franchise Disclosure Document, the company's revenue from advertising fund fees was $232,493 in 2023 and $190,874 in 2022. In 2024, the advertising fund revenue increased to $243,430. These fees are collected from franchisees based on a percentage of their gross sales, excluding sales tax, pre-approved coupons, and redemption of loyalty rewards.
Bens Soft Pretzels uses these advertising fund fees to advertise on behalf of the entire brand. Franchisees can also apply for reimbursement of general advertising expenses they directly incur. The revenue from these fees is recognized weekly based on the prior week's sales, and a receivable is recorded at year-end for any advertising fund fees that have been earned but not yet received.
For a prospective franchisee, understanding these advertising fund fees is crucial. It represents a portion of their sales that will be contributed to the overall marketing efforts of Bens Soft Pretzels. The franchisee should inquire about the specific percentage of gross sales allocated to these fees and the types of advertising activities they support. Additionally, it's important to understand the process for applying for reimbursement of local advertising expenses and the criteria for approval.