Can Bens Soft Pretzels establish company-owned stores near my franchised location?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ansion, New Territory, Resale Purchase or Territory Expansion
ITEM 12 TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets we own, or from other channels of distribution or competitive brands that we control. You receive the right to operate a BEN'S SOFT PRETZELS Store at a specific location described in the Franchise Agreement (the "Authorized Location").
For a Mobile Store, the Authorized Location will be where you park the truck or trailer when it is not in use. After we designate the Authorized Location for your Mobile Store, we will determine a nonexclusive geographic area of operation for the Mobile Store ("Designated Area"). We base the size of the Designated Area generally on population density, income level and the number of households and businesses in the area. Your Designated Area may be defined using zip codes, a map or a radius around the Location and will be identified on Schedule A to your Franchise Agreement. A description of the Designated Area will be inserted in Schedule A to the Franchise Agreement. The Mobile Store may offer and sell food products and merchandise only from locations within the Designated Area as we specify and may be prohibited from selling from locations within a certain proximity of a traditional non-mobile location (including a captive venue). You must follow any policies and procedures for the operation of your Mobile
Store, which we may establish from time to time. There may be more than one Mobile Store granted the right to operate in the same or similar non-exclusive Designated Area, including operating or granting a third party the right to operate a BEN'S SOFT PRETZELS Store from a fixed, non-mobile location (including captive venue), operating or granting a third party the right to operate from a temporary location within a captive venue or selling BEN'S SOFT PRETZELS Store food products or merchandise using any channel of distribution other than a truck or trailer. Further, we reserve the right to operate or grant others the right to operate in any and all university locations, sports venues and any venue that seats above 5,000 people, regardless if they fall inside of a non-exclusive Designated Area.
We retain all rights that are not expressly granted to you under the Franchise Agreement. The license granted to you under the Franchise Agreement does not include (i) any right to sell products and Menu Items at any location outside your Store, except for any catering or delivery services we permit, (ii) any right to sell products and Menu Items through any other channels or methods of distribution, including the Internet (or any other existing or future form of electronic commerce), (iii) any right to sell products and Menu Items to any person or entity for resale or further distribution, except as we may establish from time to time, or (iv) any right to exclude, control or impose conditions on our development of future franchised, company- or affiliate-owned Stores at any time or at any location regardless of the proximity to your Store.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. This means that as a franchisee, you may face competition from other franchisees, outlets that Bens Soft Pretzels owns, or other distribution channels or competitive brands that Bens Soft Pretzels controls. Your franchise agreement grants you the right to operate a Bens Soft Pretzels store at a specific location, but it does not prevent the franchisor from establishing other outlets nearby.
Bens Soft Pretzels retains all rights not expressly granted to the franchisee, including the right to establish franchised, company-owned, or affiliate-owned stores at any location, regardless of proximity to your store. They can also merge with, acquire, or become associated with any businesses, even those that compete with Bens Soft Pretzels. Furthermore, Bens Soft Pretzels and its affiliates can sell and distribute menu items through stores or any other distribution method under different marks.
This lack of territorial exclusivity is a significant consideration for prospective franchisees. Bens Soft Pretzels also has the right to offer and sell proprietary items or other products and services associated with the system through any distribution channels, including grocery stores, club stores, convenience stores, and the Internet. This broad reservation of rights means that your franchised location could face competition from various sources, including other Bens Soft Pretzels outlets and alternative distribution channels managed by the franchisor.