Does the Bens Soft Pretzels 3-Pack Addendum define any specific financial thresholds?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Addendum to the Franchise Agreement ("Addendum"), dated, | |
|---|---|
| 20, is entered into between("Franchisee"), and Ben's Soft Pretzels | |
| Franchising Corporation ("Franchisor"). | |
| RECITALS | |
| A. | The parties have entered into three separate Franchise Agreements, all dated, |
| 200, relating to the development and operation of BEN'S SOFT PRETZELS store franchises | |
| in | |
| or | |
| around | |
| the | |
| following | |
| locations: | |
| (1) | |
| (the | |
| " | |
| Agreement"), | |
| (2) | |
| (the | |
| " | |
| Agreement"), | |
| (3) | |
| (the | |
| " Agreement"); | |
| B. | The parties desire to amend the Agreement in accordance |
| with the terms and conditions contained in this Addendum in order to reflect changes to | |
| the required opening date for the stores licensed under the Agreements referenced in (2) | |
| and (3) and the modified initial franchise fees for those stores/Agreements. | |
| AGREEMENT | |
| Franchisor and Franchisee agree that the Agreement | |
| is hereby modified, as follows: | |
| 1. | Subparagraphs 2.A and 2.B are deleted in its entirety and replaced with the following: |
| A. Store. We grant to you the right and license to establish and operate a retail Store identified by the | |
| BEN'S SOFT PRETZELS Trademarks or such other marks as we may direct (the "Store"), at the location | |
| identified on the Data Sheet, which location must be designated within months from the date of this | |
| Agreement (the "Authorized Location"). When a location has been designated by you and approved by | |
| us, it will become part of this subparagraph 2.A as if originally stated. If a Store is not "under control" | |
| within months from the date of this Agreement (as defined in subparagraph 5.A), we may grant you an | |
| extension of time to locate a Store, or terminate this Agreement. You accept the license and undertake the | |
| obligation to operate the Store using the Trademarks and the System in compliance with the terms and | |
| conditions of this Agreement. | |
| B. Opening. You agree that the Store will be open and operating in accordance with the requirements of | |
| subparagraph 5.A within months from the date you open your Store, unless we authorize in writing | |
| an extension of time. | |
| 2. Subparagraph 9.A is deleted in its entirety and replaced with the following: | |
| A. | |
| Initial Franchise Fee. You must pay to us a nonrefundable Initial Franchise Fee of |
$30,000 for your first Store, $20,000 for your second Stores and $15,000 for your third Store. The Initial Franchise Fee is payable in installments, as follows: You will pay $47,500 at the time of signing ($30,000 for the initial franchise fee for the first Store, $10,000 for the first installment of the second Store, and $7,500 for the first installment of the third Store). You will be
required to pay an additional $10,000 of the Initial Franchise Fee at the time you sign a lease or otherwise secure a site for the location of your second Store. You will be required to pay th
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels FDD, the 3-Pack Addendum does specify certain financial thresholds related to the initial franchise fees for franchisees interested in opening multiple locations. Specifically, the initial franchise fee is structured as follows: $30,000 for the first store, $20,000 for the second store, and $15,000 for the third store.
When signing the 3-Pack Addendum, the franchisee is required to pay $47,500 upfront. This initial payment covers $30,000 for the first store's franchise fee, $10,000 as the first installment for the second store, and $7,500 as the first installment for the third store. The remaining balance of the initial franchise fees for the second and third stores are due when the franchisee secures a site (signs a lease or otherwise) for each respective location. Specifically, an additional $10,000 is due upon securing a site for the second store, and the remaining $7,500 is due upon securing a site for the third store.
It's important to note that Bens Soft Pretzels considers the initial franchise fee fully earned upon the signing of the Franchise Agreement. This fee is compensation for the expenses incurred and services provided by Bens Soft Pretzels in granting the franchise rights. This means that regardless of whether the franchisee successfully opens all three locations, the initial fees are non-refundable and are intended to cover the franchisor's initial costs and services.