Is a Bens Soft Pretzels franchisee required to participate in the national Pepsi contract?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate in our national Pepsi contract and serve Pepsi soft drinks unless your store is inside a designated area for a different soda brand.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–22)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, franchisees are generally required to participate in the national Pepsi contract. This means that franchisees must serve Pepsi soft drinks at their locations. However, there is an exception: if the store is located inside a designated area for a different soda brand, the franchisee is not required to participate in the national Pepsi contract.
This requirement ensures uniformity throughout the Bens Soft Pretzels system and allows the franchisor to negotiate favorable pricing and rebates. For example, in 2024, Bens Soft Pretzels received $58,853.00 in rebates related to franchisee purchases of Pepsi soft drinks and certain post mix products, which represented 3.52% of their total revenue of $1,669,727.14.
For a prospective franchisee, this means they will likely need to serve Pepsi products, impacting their beverage costs and offerings. However, the exception for locations within designated areas for other soda brands provides some flexibility. Franchisees should confirm the specific soda requirements for their location to understand if they are bound by the national Pepsi contract or if they have the option to serve a different brand.