What constitutes a change in the franchisee entity that requires notification to Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. "Owner" means any person or entity who, now or hereafter, directly or indirectly owns an interest in the franchisee when the franchisee is a corporation, limited liability company, or a similar entity other than a partnership entity. If the franchisee is a partnership entity, then each general partner is an Owner, regardless of the percentage of ownership interest. If the franchisee is one or more individuals, each individual is an Owner of the franchisee. Your Owner(s) are identified on the Data Sheet. Every time there is a change in the persons who are your Owners, you must, within 10 days from the date of each such change, update the Data Sheet. As used in this Agreement, any reference to Owner includes all Owners.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, a change in the persons or entities who own an interest in the franchisee requires notification. Specifically, if the franchisee is a corporation, limited liability company, or similar entity (excluding partnerships), any change in direct or indirect ownership triggers this notification requirement. If the franchisee is a partnership, each change in the general partners necessitates an update. For franchisees operating as individuals, any change in the individuals involved also requires notification.
This means that if you operate your Bens Soft Pretzels franchise through a business entity, you must inform Bens Soft Pretzels of any changes to the owners of that entity. This includes changes in shareholders, members, or other equity holders. If you operate as a partnership, you must notify Bens Soft Pretzels of any changes to the general partners. If you operate as an individual, you must inform Bens Soft Pretzels of any change in the individual owner.
The FDD states that you must update the Data Sheet within 10 days of any such change. The Data Sheet likely contains information about the ownership structure of your franchise, and updating it ensures that Bens Soft Pretzels has current information about who controls and benefits from the franchise. This is a fairly standard requirement in franchising, as franchisors typically want to know who their franchisees are and who is ultimately responsible for the operation of the franchise. Failing to provide timely notification could potentially lead to issues with your franchise agreement.