Line a baking sheet with parchment paper or silicone baking mat.
Layer all pretzels on the sheet.
Place half of caramel squares on each pretzel.
Bake in the oven for 3 to 5 minutes. The caramel will be melty but not completely filing the holes of pretzels. It will spread as it cools. Cool pretzels completely before dipping in chocolate.
When cool, dip pretzels in chocolate (cover whole pretzels or dip halves). Tap against the bowl with chocolate to help excess drip off back to the bowl.
Place back on the sheet. Sprinkle with funfetti. Let cool completely.
Store in air tight container.
Video
Notes
Please note, if your oven runs hotter, bake the pretzels for 4 to 5 minutes. The caramel is just suppose to be heated up to soften.