Must a Bens Soft Pretzels franchisee comply with subparagraph 5.E to transfer their franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Each and every transfer of any interest in this Agreement or your business governed by Paragraph 11 or any renewal agreement covered by Paragraph 4 is expressly conditioned upon your compliance with these modernization or replacement requirements at the time of transfer or renewal.
You acknowledge and agree that the requirements of this subparagraph 5.E are both reasonable and necessary to ensure continued public acceptance and patronage of BEN'S SOFT PRETZELS stores and to avoid deterioration or obsolescence in connection with the operation of the Store. If you fail to make any improvement as required by this subparagraph or perform the maintenance described in subparagraph 5.C, we may, in addition to our other rights in this Agreement, effect such improvement or maintenance and you must reimburse us for the costs we incur.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, a franchisee must comply with subparagraph 5.E regarding modernization or replacement requirements as a condition of transferring their franchise. Specifically, each transfer of any interest in the Franchise Agreement is expressly conditional upon the franchisee's compliance with these modernization or replacement requirements at the time of transfer.
Subparagraph 5.E states that from time to time, as Bens Soft Pretzels requires, the franchisee must modernize and/or replace the building, premises, trade dress, equipment, fixtures, and improvements as may be necessary for their store to conform to the standards for similarly situated new Bens Soft Pretzels stores. This also includes any required expenditures for equipment or leasehold improvements necessary to prepare new menu items or products.
This requirement ensures that all Bens Soft Pretzels stores maintain a consistent standard and appearance, which is deemed necessary to ensure continued public acceptance and patronage. Failure to comply with these modernization or replacement requirements can prevent a franchisee from transferring their franchise. If a franchisee fails to make any required improvement or perform necessary maintenance, Bens Soft Pretzels has the right to effect such improvement or maintenance and require the franchisee to reimburse them for the costs incurred.