What costs can be included in the transfer fees for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
in default and terminate this Agreement or to collect from you and the guarantors a transfer fee equal to two times the transfer fee provided for in subparagraph 11.C.
- 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.
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Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, if a franchisee decides to transfer their franchise to a new owner, they must pay Bens Soft Pretzels a transfer fee. This fee is equal to 50% of the then-current initial franchise fee. This transfer fee is nonrefundable, regardless of whether the transfer is completed.
In addition to the transfer fee, there are other conditions that must be met for the transfer to be approved by Bens Soft Pretzels. All outstanding amounts owed to Bens Soft Pretzels, its affiliates, suppliers, or the landlord must be paid in full. The franchisee must also have submitted all required reports. The franchisee must also comply with modernization requirements.
The proposed new owner (assignee) must meet all of Bens Soft Pretzels' current requirements for new franchisees and sign the current franchise agreement. The seller, each owner, and each guarantor must sign a general release of all claims against Bens Soft Pretzels and its affiliates. The assignee must also complete the required training, potentially at their own expense. Bens Soft Pretzels also has the right to request financial reports and data related to the store to evaluate the proposed transfer.