What is the geographic scope of the non-competition covenant for a former Bens Soft Pretzels franchisee?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You covenant that you will not, for a period of one year after the expiration or termination of this Agreement, or after the expiration of any Interim Period, regardless of the cause of termination, or within one year of the sale of the Store or any interest in you, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in a Competing Business:
- a. At the premises of the former Store;
- b. Within 5 miles of the Store; or
- c. Within 5 miles of any other business or store using the BEN'S SOFT PRETZELS System, whether franchised or owned by us or our affiliates.
For purposes of this Section 10.D, a Competing Business includes any store or food business which includes the sale of pretzels where the sale of pretzels is more than 10% of the overall revenue of the business.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–37)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, a former franchisee is subject to certain non-competition restrictions for one year after the termination or expiration of their Franchise Agreement, or within one year of the sale of the Store or any interest in you.
The geographic scope of this restriction includes not owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in a Competing Business: at the premises of the former Store; within 5 miles of the Store; or within 5 miles of any other business or store using the BEN'S SOFT PRETZELS System, whether franchised or owned by Bens Soft Pretzels or its affiliates.
For the purposes of the non-compete agreement, a Competing Business is defined as any store or food business which includes the sale of pretzels where the sale of pretzels is more than 10% of the overall revenue of the business. This means a former Bens Soft Pretzels franchisee could operate a food business that sells pretzels, so long as those sales do not exceed 10% of the business's total revenue.