factual

Does the Bens Soft Pretzels Addendum define the relationship between the Franchisor and Franchisee?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer from 2025 FDD Document

Mobile Store Addendum

MOBILE STORE PROGRAM

This Mobile Store Program Agreement ("Agreement") dated this day of ,, is entered into by and between Ben's Soft Pretzels Franchising Corporation, Indiana corporation ("Franchisor") and an ("Franchisee").

WITNESSETH

Franchisee desires to operate an authorized Mobile Store that is identified with the Ben's Soft Pretzels® Trademarks ("Mobile Store"), and Franchisor is willing to grant Franchisee the right to operate the Mobile Store, subject to the terms and conditions of this Addendum and the Franchise Agreement.

Franchisor has agreed to grant to Franchisee the right to operate a Mobile Store under the following terms and conditions:


6. Termination and Post-Termination Obligations.

a. 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.

  • b. Franchisee may terminate this Agreement upon 60 days' written notice to Franchisor.
  • c. In the event of termination, Franchisee must discontinue the use of the Mobile Store at the Authorized Location, remove all Marks from the Mobile Store, and take all necessary steps to comply with the applicable post-term obligations of the Franchise Agreement that are applicable to the Mobile Store.
    1. Miscellaneous. Unless otherwise stated in this Agreement, all of the terms and conditions of the Franchise Agreement apply to Franchisee's operation of the Mobile Store is considered part of the Franchise Agreement. Franchisee cannot assign the rights to the Mobile Stores and this Addendum separate from the Franchise Agreement.

[SIGNATURE PAGE FOLLOWS]

In Witness Whereof each of the undersigned, intending to be legally bound hereby has duly executed, sealed and delivered this Agreement the day and year first above written.

BEN'S PRETZELS FRANCHISING SOFT CORPORATION

MINNESOTA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

Item 13, Additional Disclosure: The following statement is added to Item 13:

We will protect your right to use the Marks or indemnify you from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name to the extent required by Minn. Stat. Sec. 80C.12, Subd.1(g).

Item 17, Notice of Termination: The following statement is added to Item 17:

With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5 which requires, except in certain specified cases, that you be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the Franchise Agreement.

Item 17, Governing Law, Jurisdiction and Venue and Choice of Forum: The following statement is added to the cover page and Item 17:

Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

Item 17, General Release: The following statement is added to Item 17:

Minnesota Rule 2860.4400D prohibits us from requiring you to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§80C.01 – 80C.22.

ADDENDUM TO THE FRANCHISE AGREEMENT REQUIRED FOR MINNESOTA FRANCHISEES


ILLINOIS ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

Item 17, Additional Disclosures. The following statement is added to Item 17:

The conditions under which your franchise can be terminated and your rights upon nonrenewal may be affected by Illinois law, 815 ILCS 705/19 and 705/20.

In conformance with Section 41 of the Illinois Franchise Disclosure Act any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.

In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.

Illinois law governs the franchise agreements.

ADDENDUM TO THE FRANCHISE AGREEMENT REQUIRED FOR ILLINOIS FRANCHISEES

Source: Item 22 — CONTRACTS (FDD pages 46–47)

What This Means (2025 FDD)

According to the 2025 Bens Soft Pretzels FDD, the addenda modify the franchise agreement and address specific aspects of the franchisor-franchisee relationship. The Mobile Store Program Agreement outlines the terms and conditions under which a franchisee can operate a mobile store, indicating a specific type of relationship. Additionally, addenda for states like California, Illinois, Minnesota, New York, Virginia, and Washington modify the franchise agreement to comply with state-specific laws, further defining the relationship within those jurisdictions. These addenda cover various aspects, including termination conditions, franchisee rights, and governing laws, tailoring the general franchise agreement to specific legal requirements and operational contexts.

The Mobile Store Program Agreement explicitly states that it is between Ben's Soft Pretzels Franchising Corporation, as the Franchisor, and the franchisee. It grants the franchisee the right to operate a Mobile Store under the Ben's Soft Pretzels trademarks, subject to the terms and conditions outlined in the addendum and the overarching Franchise Agreement. This agreement clarifies that the franchisee's right to operate the Mobile Store is contingent upon compliance with the Franchise Agreement, and it details conditions for termination by either party.

State-specific addenda also play a crucial role in defining the franchisor-franchisee relationship by addressing legal nuances and protections within those states. For example, the Minnesota addendum ensures compliance with Minnesota Statutes regarding trademark protection, termination notice, and franchisee rights, preventing the franchisor from requiring litigation outside Minnesota or infringing on franchisee rights. Similarly, the Illinois addendum addresses termination conditions and governing laws, ensuring that Illinois law governs the franchise agreements and that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act. These addenda collectively shape the legal and operational framework of the franchise relationship, ensuring compliance with local regulations and providing franchisees with specific protections and rights.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.