For Bens Soft Pretzels, what is the definition of 'Applicable Franchise Registration State' in the Rider?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Rider is being signed because you are a resident of one of the states listed in the heading of this Rider (the "Applicable Franchise Registration State") or a non-resident who is acquiring franchise rights permitting the location of one or more BEN'S SOFT PRETZELS ® businesses in the Applicable Franchise Registration State.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the "Applicable Franchise Registration State" is defined within the context of a rider to the franchise agreement. This rider is applicable if the franchisee is a resident of one of the states listed in the heading of the rider, or if the franchisee is a non-resident acquiring franchise rights that permit the establishment of one or more Bens Soft Pretzels businesses in that state.
In simpler terms, the "Applicable Franchise Registration State" refers to a state that requires franchise registration and where the franchisee either resides or intends to operate a Bens Soft Pretzels franchise. This definition is important because the rider to the franchise agreement is specifically designed to address the legal requirements and protections provided by the franchise laws of that particular state. The rider ensures that franchisees receive the benefits and disclosures mandated by their state's franchise laws.
For a prospective franchisee, this means that if they reside in or plan to operate a Bens Soft Pretzels franchise in a state with franchise registration laws, they will be subject to the terms and conditions outlined in the rider. This rider amends the standard franchise agreement to comply with the specific regulations of that state, providing additional protections and disclosures to the franchisee. It is crucial for franchisees to carefully review the rider and understand how it modifies the franchise agreement to align with the franchise laws of their "Applicable Franchise Registration State."
It's important to note that Bens Soft Pretzels provides a list of states for which this rider applies. The Acknowledgment Addendum to the Franchise Agreement specifically excludes candidates located in, or franchised restaurant businesses to be located in, the following franchise registration states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI. This means that for these states, the standard Acknowledgment Addendum does not apply, and franchisees should look for specific state addenda or riders that address the franchise laws in those jurisdictions.