What form must the covenants not to compete take for a Bens Soft Pretzels franchise?

According to the 2025 Bens Soft Pretzels FDD, the franchisor may require a franchisee to obtain a signed non-compete agreement from their manager, owners, guarantors, officers, directors, members, managers, partners, and any immediate family members with the same non-compete provisions outlined in the franchise agreement. This agreement must be in a form satisfactory to Bens Soft Pretzels. This means that the franchisor has the discretion to dictate the specific format and content of the non-compete agreement, as long as it aligns with the general non-compete terms already established in the Franchise Agreement.

During the term of the Franchise Agreement, franchisees are prohibited from owning, managing, operating, or having any interest in any other store or food business that is not authorized by the agreement, unless Bens Soft Pretzels provides written consent. After the agreement expires or terminates, the franchisee is restricted for one year from engaging in a "Competing Business" within specific locations. A "Competing Business" is defined as any store or food business where the sale of pretzels accounts for more than 10% of the business's overall revenue.

These restrictions apply at the premises of the former Bens Soft Pretzels store, within 5 miles of the store, or within 5 miles of any other business using the Bens Soft Pretzels system. This ensures that franchisees, and those affiliated with them, cannot directly compete with the Bens Soft Pretzels system during the franchise term and for a limited time afterward, protecting the franchisor's interests and market presence.