What is the impact of a seizure of ownership interests in a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ockets, soft drinks and all other food and beverage products prepared according to our specified recipes and procedures, as we may modify and change from time to time.
- D. "Owner" means any person or entity who, now or hereafter, directly or indirectly owns an interest in the franchisee when the franchisee is a corporation, limited liability company, or a similar entity other than a partnership entity. If the franchisee is a partnership entity, then each general partner is an Owner, regardless of the percentage of ownership interest. If the franchisee is one or more individuals, each individual is an Owner of the franchisee. Your Owner(s) are identified on the Data Sheet. Every time there is a change in the persons who are your Owners, you must, within 10 days from the date of each such change, update the Data Sheet. As used in this Agreement, any reference to Owner includes all Owners.
- E. "Store" means the BEN'S SOFT PRETZELS Store you develop and operate pursuant to this Agreement.
- F. "System" means the BEN'S SOFT PRETZELS System, which consists of distinctive food selection and presentation, unique recipes, methods and procedures, equipment, interior and exterior accessories, color schemes, products, services, method of operation, marketing and advertising programs, management programs, standards, specifications and proprietary information, all of which we may change modify and change from time to time.
- G. "Trademarks" means the BEN'S SOFT PRETZELS Trademark that has been registered in the United States and elsewhere and the trademarks, service marks and trade names set forth on Schedule B, as we may modify and change from time to time, and the trade dress and other commercial symbols used in the Store. Trade dress includes the designs, color schemes and image we authorize you to use in the operation of the Store from time to time.
GRANT OF LICENSE
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- The following provisions control with respect to the license granted hereunder:
- A. Store.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the impact of a seizure of ownership interests in a Ben's Soft Pretzels franchise isn't directly addressed. However, the franchise agreement stipulates conditions regarding ownership and transfer that could be relevant in such a situation.
The agreement defines an "Owner" as any individual or entity holding a direct or indirect interest in the franchisee. If there are changes to the owners, the franchisee must update the Data Sheet within 10 days. This suggests that Ben's Soft Pretzels maintains close oversight of who has a stake in each franchise.
Furthermore, the franchise agreement outlines conditions for transferring ownership, including meeting the franchisor's current requirements, paying outstanding amounts, providing required reports, and complying with modernization provisions. A transfer fee equal to 50% of the then-current initial franchise fee is also required. In the event of a seizure of ownership interests, these transfer conditions would likely need to be met to ensure the continued operation of the Ben's Soft Pretzels franchise under new ownership. A prospective franchisee should seek clarification from the franchisor regarding the specific procedures and requirements in the event of an involuntary transfer of ownership due to seizure or other legal processes.