How does Bens Soft Pretzels accomplish termination of the franchise agreement after a default?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary contained in this Agreement, Franchisor may terminate this Agreement upon 60 days' written notice to Franchisee for any reason. In addition, Franchisor may terminate this Agreement if Franchisee is in default under this Agreement and fails to cure the default within the applicable cure period set forth in the Franchise Agreement. Franchisee's right to operate the Mobile Store also is contingent upon Franchisee remaining in compliance with the terms of the Franchise Agreement. Notwithstanding anything to the contrary contained herein, Franchisor may terminate this Agreement if Franchisee defaults under the Franchise Agreement or any other agreement between Franchisee and Franchisor or its affiliates and such default is non-curable or, if such default is curable, Franchisee fails to cure such default within the applicable cure period.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, Bens Soft Pretzels can terminate the franchise agreement if the franchisee defaults. Bens Soft Pretzels must provide 60 days' written notice if terminating for any reason. However, if the termination is due to a default by the franchisee, Bens Soft Pretzels will provide notice, and the franchisee will have an opportunity to cure the default within the period specified in the Franchise Agreement. If the default is not curable, or if the franchisee fails to cure it within the given timeframe, Bens Soft Pretzels can proceed with terminating the agreement.
This means that a Bens Soft Pretzels franchisee needs to be aware of what constitutes a default under the Franchise Agreement and the specific cure periods allowed for each type of default. Failure to address a default within the stipulated time can lead to termination of the franchise. The franchisee's right to operate a Mobile Store is also contingent upon compliance with the terms of the Franchise Agreement.
It is important for a prospective Bens Soft Pretzels franchisee to carefully review the Franchise Agreement to understand their obligations and the circumstances that could lead to a default. Understanding the cure periods and ensuring compliance with all agreements is crucial to maintaining the franchise and avoiding termination. Franchisees should also be aware of their post-termination obligations, such as discontinuing the use of the Mobile Store at the Authorized Location and removing all Marks from the Mobile Store.