What happens if a Bens Soft Pretzels franchisee contracts with a supplier who has not been approved?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ble to franchisees. You may contract only with suppliers whom we have approved. We will notify you of our approval or disapproval within 30 days of our receiving all requested information. We may revoke our approval of a supplier at any time for any reason. Upon receipt of our revocation of approval, you must cease to use or sell any disapproved products and cease to purchase from any disapproved supplier.
Other than Live Large Distribution Inc., Ben's Soft Pretzels LLC, Evan Jones Management Inc. and us, there is no supplier in which an officer of ours owns an interest.
You must deliver to us upon execution of the lease or purchase agreement for the Authorized Location, but before commencing construction of your Store, and thereafter annually or at our request a proper certificate evidencing the existence of such insurance coverage and your compliance with the provisions of this subparagraph. The insurance certificate must show our and our affiliates' status as an additional insured and provide that we will be given 30 days' prior written notice of material change in or termination or cancellation of the policy.
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 must only contract with suppliers that Bens Soft Pretzels has approved. If a franchisee wishes to use a supplier not already on the approved list, they must submit a written request for approval. This request must include any background documents or evidence that Bens Soft Pretzels may require.
Bens Soft Pretzels has the right to require the franchisee to obtain permission from the unapproved supplier to allow Bens Soft Pretzels' representatives to inspect the supplier's facilities. Bens Soft Pretzels can also require that the franchisee delivers samples from the supplier for evaluation and testing, either directly to Bens Soft Pretzels or to an independent testing facility designated by them.
Bens Soft Pretzels will notify the franchisee of approval or disapproval of the supplier within 30 days of receiving all requested information. Bens Soft Pretzels can revoke approval of a supplier at any time for any reason. If approval is revoked, the franchisee must immediately stop using or selling any products from the disapproved supplier and cease making any further purchases from them. To have an alternate supplier approved, the franchisee must first notify Bens Soft Pretzels in writing and submit sufficient specifications, samples, and information, along with a fee (currently $500 per day) for each person Bens Soft Pretzels provides for this determination, plus reasonable expenses.