Does the Bens Soft Pretzels Addendum contain any financial thresholds?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
$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 the remaining $7,500 of the Initial Franchise Fee at the time you sign a lease or otherwise secure a site for the location of your third Store. In all cases, the Initial Franchise Fee is earned upon your signing of the Franchise Agreement and is in consideration for our expenses incurred and services rendered in granting you the franchise rights.
- C. Transfer Fee. You must pay to us a transfer fee in the amount of 50% of our thencurrent initial franchise fee. The transfer fee is nonrefundable even if, for any reason, the proposed transfer does not occur.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels FDD, the addendum includes financial thresholds related to franchise fees and transfer fees. Specifically, the initial franchise fee is structured with different amounts for the first, second, and third stores. The initial franchise fee is $30,000 for the first store, $20,000 for the second store, and $15,000 for the third store. The franchisee pays $47,500 upon signing the agreement, covering the initial fee for the first store and initial installments for the second and third stores. Additional payments of $10,000 and $7,500 are required when securing sites for the second and third stores, respectively. These fees are earned by Bens Soft Pretzels upon signing the Franchise Agreement.
Additionally, the FDD states that there is a transfer fee involved if a franchisee wants to transfer their franchise. The transfer fee is 50% of the then-current initial franchise fee. This fee is nonrefundable, regardless of whether the transfer is completed.
These financial obligations are important for prospective franchisees to consider, as they represent significant upfront and potential future costs associated with operating a Bens Soft Pretzels franchise. Franchisees should carefully evaluate their financial capacity and business plan to ensure they can meet these requirements.