What happens if a Bens Soft Pretzels franchisee loses their lease?

According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, a franchisee does not have the right to relocate if they lose the right to occupy their store premises due to a lease cancellation caused by their breach of the lease agreement. In fact, such a lease termination is grounds for immediate termination of the Franchise Agreement itself under subparagraph 13.B.2. This means a franchisee could lose their franchise entirely if they fail to meet their lease obligations.

However, the FDD also outlines some protections for Bens Soft Pretzels in the event of a lease termination. The franchisor has the right to access the premises to remove signs and other items identifying it as a Bens Soft Pretzels store. This allows them to protect their trademarks and system by ensuring the location is no longer associated with the brand. The franchisor can also make necessary modifications, such as repainting, to further distinguish the premises from Bens Soft Pretzels stores.

Furthermore, Bens Soft Pretzels has the option to assume the lease if they choose. If they elect to do so, they must notify the landlord in writing and execute an agreement assuming the lease, effective at the commencement of the extension or renewal term. In cases where the franchisor assumes the lease, they have the right to assign or sublet the premises to another Bens Soft Pretzels franchisee, subject to the landlord's approval, which cannot be unreasonably withheld if the assignee is creditworthy and meets the franchisor's standards. This provides Bens Soft Pretzels with flexibility in maintaining a presence in the location.

If Bens Soft Pretzels assumes the lease, the original franchisee remains liable for obligations prior to the date of assumption. Bens Soft Pretzels is entitled to recover from the franchisee any amounts paid to the landlord to correct the franchisee's defaults under the lease, including interest and reasonable collection costs. This clause ensures that the franchisee is responsible for their failures and that Bens Soft Pretzels can recoup any expenses incurred as a result of the franchisee's breach.