factual

In the Bens Soft Pretzels agreement, what is the effect of references to 'you' if the franchisee is more than one individual?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer from 2025 FDD Document

If the franchisee is 2 or more individuals, the individuals are jointly and severally liable, and references to you in this Agreement includes all of the individuals.

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

What This Means (2025 FDD)

According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, if the franchisee consists of two or more individuals, those individuals are considered jointly and severally liable. This means that each individual is fully responsible for all obligations and liabilities under the Franchise Agreement.

In practical terms, Bens Soft Pretzels can pursue any one or all of the individual franchisees for the full amount of any debt or obligation. If one franchisee fails to meet their responsibilities, the others are equally responsible for covering the shortfall. This applies to all aspects of the agreement.

This clause protects Bens Soft Pretzels by ensuring that all franchisees are fully accountable. Prospective franchisees entering into an agreement with multiple individuals should carefully consider the implications of joint and several liability, as the actions or inactions of one franchisee can directly impact the financial and legal standing of all other franchisees involved. It is advisable to seek legal counsel to fully understand the risks and responsibilities associated with this type of agreement.

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.