Is a bequest of the Bens Soft Pretzels franchise considered a transfer under the agreement?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Any sale (including installment sale), lease, pledge, management agreement, contract for deed, option agreement, assignment, bequest, gift or otherwise, or any arrangement pursuant to which you turn over all or part of the daily operation of the business to a person or entity who shares in the losses or profits of the business in a manner other than as an employee will be considered a transfer for purposes of this Agreement. Specifically, but without limiting the generality of the foregoing, the following events constitute a transfer and you must comply with the right of first refusal, consent, transfer fee, and other transfer conditions in this Paragraph 11:
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, a bequest of the franchise is considered a transfer. This means that if a franchisee wishes to pass their franchise to an heir or beneficiary through a will, it is treated as a transfer of ownership under the franchise agreement. As such, the beneficiary must meet certain requirements and conditions.
Specifically, the FDD states that any "assignment, bequest, gift or otherwise" is considered a transfer. This broad definition ensures that all changes in ownership, whether during the franchisee's lifetime or after their death, are subject to the franchisor's approval and transfer conditions. This is a common practice in franchising, as franchisors want to ensure that new owners are qualified and capable of maintaining the brand's standards.
Before the bequest can be finalized, Bens Soft Pretzels requires that they be given the right of first refusal to acquire the franchise agreement. If Bens Soft Pretzels does not exercise this right, the beneficiary must still obtain the franchisor's written consent, pay a transfer fee, and satisfy other transfer conditions outlined in the franchise agreement. These conditions likely include meeting the franchisor's current requirements for franchisees, completing training, and signing the current form of the franchise agreement.