Does the Bens Soft Pretzels franchise agreement create a fiduciary relationship?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ta franchisees and, instead, the statute of limitations under North Dakota law will apply.
- 11. The Franchise Agreement stipulates that the franchisee shall pay all costs and expenses incurred by Ben's Soft Pretzels Franchising Corporation in enforcing the agreement. For North Dakota franchisees, the prevailing party is entitled to recover all costs and expenses, including attorneys' fees.
Franchisor: Ben's Soft Pretzels Franchising Corporation
Its: Its: Its:
VIRGINIA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
Item 17, Additional Disclosure. In recognition of the restrictions contained in Section 13.1- 564 of the Virginia Retail Franc
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not explicitly state whether the Bens Soft Pretzels franchise agreement creates a fiduciary relationship between the franchisor and franchisee. While the document details various aspects of the franchise agreement, such as obligations, fees, and conditions for transfer, it does not contain specific language establishing a fiduciary duty.
However, the Virginia Addendum included in Item 22 does state that "Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause." This suggests that there are legal protections in place for franchisees, but it does not define the relationship as fiduciary. Similarly, the Washington Addendum and other clauses address limitations of claims, costs, and expenses, but these do not establish a fiduciary relationship either.
Therefore, a prospective Bens Soft Pretzels franchisee should seek clarification from the franchisor or legal counsel regarding the nature of the relationship and whether it is considered fiduciary under applicable state laws. Understanding the legal duties and responsibilities of both parties is crucial before entering into a franchise agreement.