Is Bens Soft Pretzels allowed to merge with or acquire businesses that compete with Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
e regardless of where they reside or any other factor. We will not be required to pay you any compensation for any Mobile Stores that conduct business near your Store.
We and our affiliates retain all rights that are not expressly granted to you under this Agreement. Further, we and our affiliates may, among other things, on any terms and conditions we deem advisable, without compensation to any franchisee, and without granting you any rights therein:
- (i) establish and/or license others to establish franchised or company-owned or affiliate-owned Stores at any location, regardless of the proximity of such stores to your Designated Area;
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 and its affiliates have the right to merge with, acquire, or become associated with any businesses or stores, including those that compete with Bens Soft Pretzels. This includes the ability to convert these acquired businesses to operate under Bens Soft Pretzels' trademarks and offer similar menu items, products, and services, regardless of their location. This activity can occur without any compensation to the franchisee.
This clause gives Bens Soft Pretzels significant latitude in expanding its business and market presence. For a franchisee, this means that Bens Soft Pretzels could potentially acquire a competing business near their location, which could impact their sales and market share. The franchisee would not be entitled to any compensation as a result of such actions.
This is a standard practice in franchising, where franchisors retain the right to grow their brand through various means, including acquisitions. However, it's crucial for prospective franchisees to understand the extent of these rights and how they might affect their individual business. Franchisees should consider the potential impact of such acquisitions on their business when evaluating the franchise opportunity.