Are Bens Soft Pretzels franchisees aware that other franchisees may operate under different agreements?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
are BEN'S SOFT PRETZELS stores that operate and sell product out of a vehicle (generally a food truck or trailer). There are no restrictions or limitations from where consumer business may be generated. You are not provided consumer protections to the extent that consumers can visit any BEN'S SOFT PRETZELS store that they desire regardless of where they reside or any other factor. We will not be required to pay you any compensation for any Mobile Stores that conduct business near your Store.
We and our affiliates retain all rights that are not expressly granted to you under this Agreement. Further, we and our affiliates may, among other things, on any terms and conditions we deem advisable, without compensation to any franchisee, and without granting you any rights therein:
- (i) establish and/or license others to establish franchised or company-owned or affiliate-owned Stores at any location, regardless of the proximity of such stores to your Designated Area;
- (ii) merge with, acquire or become associated with ("Merger/Acquisition Activity") any businesses or stores of any kind (including those in competition with BEN'S SOFT PRETZELS) under other systems and/or marks, which businesses and stores may convert to or operate under the Trademarks and may offer or sell menu items, products and services that are the same as or similar to the Menu Items offered at or from the Store, and which may be located anywhere; and
- (iii) sell and distribute for ourselves and/or license others to sell and distribute through franchised businesses or any other method of distribution menu items the same as or different from the Menu Items offered under the System, and which are offered and distributed under marks different than the Trademarks.
We and our affiliates also have the right to offer, sell or distribute any proprietary items or other products or services associated with the System (now or in the future) or identified by the Trademarks, or any other trademarks, service marks or trade names through any distribution channels or methods, without compensation to any franchisee. The distribution channels or methods ("Alternative Methods of Distribution") include, without limitation, grocery stores, club stores, convenience stores, wholesale, business or industry locations (e.g. manufacturing site, office building), military installations, military commissaries or the Internet (or any other existing or future form of electronic commerce).
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels FDD, franchisees should be aware that other franchisees may operate under different agreements, particularly concerning mobile stores. The FDD states that there are Bens Soft Pretzels stores that operate and sell products out of a vehicle, such as a food truck or trailer. There are no restrictions on where these mobile stores can generate business, and franchisees are not provided consumer protections against these mobile stores. Bens Soft Pretzels is not required to compensate franchisees for any business that mobile stores conduct near their store.
This means that a traditional Bens Soft Pretzels store could potentially face competition from a mobile unit operating in the same general area, without any compensation or protection from the franchisor. This is a crucial point for prospective franchisees to consider, as it could impact their revenue and profitability. The franchisor retains the right to establish franchised or company-owned stores at any location, regardless of proximity to a franchisee's designated area.
Furthermore, Bens Soft Pretzels and its affiliates have the right to merge with or acquire other businesses, including competitors, which may then operate under the Bens Soft Pretzels trademarks and offer similar menu items. They can also sell and distribute menu items through other channels, even under different trademarks, without compensating the franchisee. This broad latitude granted to the franchisor could lead to increased competition and potential market saturation, affecting the franchisee's business.
In addition, Bens Soft Pretzels and its affiliates can distribute proprietary items or other products and services associated with the Bens Soft Pretzels system through any distribution channels, including grocery stores, club stores, and the internet, without compensating franchisees. This could further dilute the franchisee's market share and revenue potential. Therefore, prospective franchisees should carefully evaluate these terms and consider the potential impact on their investment and business operations.