What conditions must a transferee meet to be approved by Bens Soft Pretzels for a franchise transfer?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Transfer Fee. You must pay to us a transfer 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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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–37)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must ensure the proposed transferee meets several conditions to gain approval from Bens Soft Pretzels. These conditions are designed to ensure the continued success and consistency of the franchise system. The assignee must meet all of Bens Soft Pretzels' then-current requirements for the franchise program at the time of the proposed transfer and sign the then-current form of the franchise agreement, modified to reflect the remaining term of the original agreement. This ensures that the new franchisee is up to the standards that Bens Soft Pretzels expects of its franchisees.
Additionally, all outstanding financial obligations must be settled. This includes any amounts owed by the current franchisee to Bens Soft Pretzels, its affiliates, suppliers, or the landlord of the store premises. The franchisee must also ensure that all required reports have been submitted to Bens Soft Pretzels in accordance with specified guidelines. The store must be modernized according to Bens Soft Pretzels' requirements, ensuring it meets current brand standards. In cases involving an installment sale where the franchisee retains a financial interest, the franchisee and any guarantors must continue to guarantee performance under the agreement until the sale is finalized or the interest is terminated.
Furthermore, the current 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, releasing Bens Soft Pretzels and its affiliates from any liability. The assignee is also required to complete the training program at their own expense or at the expense of the current franchisee, ensuring they are properly equipped to operate the franchise. Bens Soft Pretzels also has the right to request financial reports and other data related to the store's operations to evaluate the proposed transfer, and the franchisee must allow Bens Soft Pretzels to confer with potential assignees and provide them with relevant information. Finally, the franchisee will have to pay a transfer fee equal to 50% of the then-current initial franchise fee.
These conditions are typical in franchise agreements to protect the brand and ensure that new franchisees are well-qualified and committed to maintaining the standards of the Bens Soft Pretzels system. Franchisees should carefully review these requirements and discuss any concerns with Bens Soft Pretzels before initiating a transfer.