factual

What claims are not subject to the dispute resolution requirements for Bens Soft Pretzels?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in Agreement Summary
o. Franchisor’s option to purchase franchisee’s business Section 14B Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser appointed by us will decide.
p. Death or disability of franchisee Section 11E You must assign franchise to an approved buyer within 180 days. All transfer provisions of section 8 of the franchise agreement apply.
q. Non-competition covenants during the term of the franchise Section 10D No store or food business which includes the sale of pretzels where the sale of pretzels is more than 10% of the overall revenue of the business, nor an organization franchising a similar business (subject to state law).
r. Non-competition covenants after the franchise is terminated or expires Section 10D No store or food business which includes the sale of pretzels where the sale of pretzels is more than 10% of the overall revenue of the business for 1 year within 5 miles of your former store location, or within 5 miles of any other BEN’S SOFT PRETZELS store. No organization franchising a similar business for 1 year. No solicitation or acceptance of business from former customers for 1 year (subject to state law).
s. Modification of agreement Section 15B Modification by written agreement signed by you and us. The Operations Manual can be revised and modified by us.
t. Integration/merger clause Section 15B Only the terms of the Franchise Agreement (including System Standards in the Operations Manual) are binding (subject to state and federal law). Any statements or promises not in the Franchise Agreement and this disclosure document and may not be enforceable. No claim made in any franchise agreement is intended to disclaim the representations made in this Franchise Disclosure Document.
u. Dispute resolution by arbitration or mediation Section 12 Except for certain claims, all disputes must be mediated and arbitrated in the city where our headquarters is located when the proceedings are conducted, currently Goshen, Indiana (subject to state law).

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 37–42)

What This Means (2025 FDD)

According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, most disputes must go through mediation and arbitration. These proceedings must occur in the city where Bens Soft Pretzels' headquarters is located, which is currently Goshen, Indiana. However, this requirement is subject to state law, meaning that specific state regulations could modify this process.

There are certain claims that are exempt from this dispute resolution process. The FDD does not specify what these claims are, but it does state that "Except for certain claims, all disputes must be mediated and arbitrated".

Prospective franchisees should seek clarification from Bens Soft Pretzels regarding the specific types of claims that are not subject to mediation and arbitration. Understanding these exceptions is crucial for assessing the potential legal risks and costs associated with the franchise agreement. Franchisees should also consult with a legal professional to understand their rights and obligations under both the franchise agreement and applicable state laws.

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.