How does Bens Soft Pretzels define an 'Owner' of a franchise?
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, an 'Owner' is defined based on the franchisee's business structure. If the franchisee is a corporation, limited liability company, or a similar entity (excluding partnerships), an Owner is any person or entity that directly or indirectly owns an interest in the franchisee. If the franchisee is a partnership, each general partner is considered an Owner, regardless of their percentage of ownership. If the franchisee consists of one or more individuals, each individual is considered an Owner.
The Data Sheet associated with the Franchise Agreement identifies the specific Owners for each franchise. Bens Soft Pretzels requires franchisees to update the Data Sheet within 10 days of any change in the persons who are Owners. Any reference to 'Owner' in the Franchise Agreement includes all Owners.
This definition is important because the actions of the Owners can have implications for the franchise agreement, particularly regarding non-compete covenants. The document states that any violation of these covenants by individuals holding any interest in the franchisee entity may result in an injunction, default, and termination of the Franchise Agreement. Therefore, prospective franchisees need to be aware that the term 'you' in the non-compete context is broadly defined to include anyone holding an interest in the franchisee entity.