For Bens Soft Pretzels franchisees, what is the effect of the Rider on the original Franchise Agreement?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider to State Addendum to BEN'S SOFT PRETZELS ® Franchise Disclosure Document and Franchise Agreement is entered into by and between Ben's Soft Pretzels Franchising Corporation, 1119 S. Indiana Avenue, Goshen, Indiana 46526 ("we" or "us") and ("you"). |
|---|
| A. |
| This Rider is being signed because you are a resident of one of the states listed in |
| the heading of this Rider (the "Applicable Franchise Registration State") or a non-resident who is |
| acquiring franchise rights permitting the location of one or more BEN'S SOFT PRETZELS ® |
| businesses in the Applicable Franchise Registration State. |
| B. |
| We and you have contemporaneously herewith entered into a Franchise |
| Agreement (the "Agreement") and wish to amend the Agreement as provided herein. |
| NOW, THEREFORE, for and in consideration of good and valuable consideration, the |
| receipt and sufficiency of which are hereby acknowledged, the Agreement is hereby amended as |
| follows: |
| 1. |
| The following language is hereby added to the end of the Agreement: "No |
| statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection |
| with the commencement of the franchise relationship shall have the effect of (i) waiving any |
| claims under any applicable state franchise law, including fraud in the inducement, or (ii) |
| disclaiming reliance on any statement made by any franchisor, franchise seller, or other person |
| acting on behalf of the franchisor. This provision supersedes any other term of any document |
| executed in connection with the franchise." |
| 2. |
| Except as provided in this Rider, the Agreement remains in full force and effect in |
| accordance with its terms. This Rider shall be effective only to the extent that the jurisdictional |
| requirements of the franchise law of the Applicable Franchise Registration State are met |
| independently without reference to this Rider. |
| YOU: |
| WE: |
| BEN'S SOFT PRETZELS |
| FRANCHISING CORPORATION |
| By |
| By |
| Title |
| Title |
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels FDD, the Rider to the State Addendum modifies the Franchise Agreement. This Rider is applicable if the franchisee is a resident of a state that requires franchise registration or if they are a non-resident acquiring franchise rights in such a state.
The Rider amends the Franchise Agreement by adding a clause that protects the franchisee. This clause ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Bens Soft Pretzels or its representatives. This provision takes precedence over any conflicting terms in any document associated with the franchise agreement.
Except as specifically outlined in the Rider, the original Franchise Agreement remains fully effective. The Rider's effectiveness is contingent upon meeting the jurisdictional requirements of the franchise law in the relevant state, independent of the Rider itself. This means that the protections afforded by the rider are only valid if they align with the existing franchise laws of the state in question.