What conditions must be satisfied for a transfer of a Bens Soft Pretzels franchise to be approved?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
fer fee in the amount of 50% of our thencurrent initial franchise fee. The transfer fee is nonrefundable even if, for any reason, the proposed transfer does not occur.
- D. Conditions of Transfer. We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
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- Assignee Requirements. The assignee must meet all of our then-current requirements for our BEN'S SOFT PRETZELS franchise program we are offering at the time of the proposed transfer and sign our then-current form of franchise agreement modified to reflect the term remaining under this Agreement.
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- Payment of Amounts Owed. All amounts owed by you to us, or any of our affiliates, your suppliers or any landlord for the Store premises and Store, or upon which we or any of our affiliates have any contingent liability must be paid in full.
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- Reports. You must have provided all required reports to us in accordance with subparagraphs 9.G and H.
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- Modernization. You must have complied with the provisions of subparagraph 5.E.
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- Guarantee. In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated thereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
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- General Release. You, each Owner and each guarantor must sign a general release of all claims arising out of or relating to this Agreement, your Store or the parties' business relationship, in the form we designate, releasing us and our affiliates.
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- Training. The assignee must, at your or assignee's expense, comply with the training requirements of subparagraph 7.B.
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- Financial Reports and Data. We have the right to require you to prepare and furnish to assignee and/or us such financial reports and other data relating to the Store and its operations reasonably necessary or appropriate for assignee and/or us to evaluate the Store and the proposed transfer. You agree that we have the right to confer with proposed assignees and furnish them with information concerning the Store and proposed transfer without being
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held liable to you, except for intentional misstatements made to an assignee.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, several conditions must be met to gain approval for a franchise transfer. Bens Soft Pretzels requires that the proposed assignee (the new franchisee) meet all the current requirements for franchisees at the time of the transfer. This includes signing the then-current franchise agreement, modified to reflect the remaining term of the original agreement. All outstanding payments owed to Bens Soft Pretzels, its affiliates, suppliers, or the landlord must be paid in full before the transfer can proceed. This encompasses any contingent liabilities that Bens Soft Pretzels or its affiliates might have. The franchisee must also have submitted all required reports to Bens Soft Pretzels.
Additionally, the franchise location must be up to date with any modernization requirements set by Bens Soft Pretzels. In cases where the seller retains a financial interest in the franchise, they and any guarantors must continue to guarantee performance under the agreement until the final sale or termination of their interest. The franchisee, each owner, and each guarantor must sign a general release of all claims related to the franchise agreement, the store, or the business relationship, in a form designated by Bens Soft Pretzels, releasing Bens Soft Pretzels and its affiliates from any liability. The assignee is also required to complete the necessary training, at their own or the original franchisee's expense.
Finally, Bens Soft Pretzels has the right to request financial reports and other data about the store's operations to evaluate the proposed transfer. Bens Soft Pretzels is also allowed to communicate directly with potential assignees and provide them with information about the store and the proposed transfer without being held liable. A transfer fee equal to 50% of the then-current initial franchise fee must be paid to Bens Soft Pretzels; this fee is nonrefundable, regardless of whether the transfer is completed.