What happens if a Bens Soft Pretzels franchisee dies or becomes disabled?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary | |
|---|---|---|---|
| o. | Franchisor’s option to purchase franchisee’s business | Section 14B | Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser appointed by us will decide. |
| p. | Death or disability of franchisee | Section 11E | You must assign franchise to an approved buyer within 180 days. All transfer provisions of section 8 of the franchise agreement apply. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 37–42)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the franchise agreement must be assigned to an approved buyer within 180 days. This means that the franchisee's estate or legal representative has a limited time frame to find a suitable buyer who meets Bens Soft Pretzels's approval criteria. All transfer provisions outlined in Section 8 of the franchise agreement will apply to this assignment. This ensures that the new franchisee adheres to the standards and requirements set by Bens Soft Pretzels.
This requirement protects Bens Soft Pretzels by ensuring that the franchise continues to operate under competent management even after the original franchisee is no longer able to run the business. It also provides a mechanism for the franchisee's family or estate to realize some value from the franchise by selling it to a qualified buyer. The 180-day timeframe puts pressure on the estate to act quickly, which may affect the selling price or the pool of potential buyers.
Prospective franchisees should carefully review Section 8 of the franchise agreement to understand the specific requirements and procedures for transferring the franchise. This includes understanding the criteria Bens Soft Pretzels uses to approve potential buyers, any transfer fees that may be applicable, and the obligations of both the seller and the buyer in the transfer process. Understanding these provisions is crucial for planning purposes and to ensure a smooth transition in the event of death or disability.