Is the initial franchise fee for a single Bens Soft Pretzels store refundable?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Fee
The initial franchise fee for a single Store is $30,000. It is paid to us as a lump sum upon signing the Franchise Agreement, is earned upon receipt and is not refundable.
We also offer a program which allows for deferred payment of part of the initial franchise fee to franchisees willing to commit to open up to 3 Stores. The total initial franchise fee for this program is $65,000 (i.e., $30,000 initial franchise fee for the first Store, $20,000 initial franchise fee for the second Store and $15,000 for the third Store). You will sign all 3 franchise agreements at the same time and pay $47,500 at the time of signing ($30,000 for the initial franchise fee for the first Store, $10,000 for the first installment of the second Store, and $7,500 for the first installment of the third Store). You will be required to open your second Store 12 months after the opening of your first Store. You will be required to pay an additional $10,000 of the initial franchise fee at the time you sign a lease or otherwise secure a site for the location of your second Store. You will be required to open your third Store 18 months after the opening of your first Store. You will be required to pay the remaining $7,500 of the initial franchise fee at the time you sign a lease or otherwise secure a site for the location of your third Store. If you enter into multiple franchise agreements in order to defer portions of the initial franchise fee, as described in this paragraph, the initial franchise fee is not refundable under any circumstances.
In addition to the above program, we will reduce the initial franchise fee for existing franchisees if they decide, during the term of a franchise agreement with us, to open one or more additional Stores. If an existing franchisee seeks to open an additional Store, we will reduce the initial franchise fee to $7,500- $25,000 for the franchisee's second and subsequent Stores, depending on factors like whether the Store is a Mobile Store or Captive Venue. These subsequently paid initial franchise fees are payable in lump sum
upon execution of the then-current form of franchise agreement and are not refundable under any circ
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the initial franchise fee for a single store is generally not refundable. The standard initial franchise fee for a single Bens Soft Pretzels store is $30,000, payable as a lump sum when signing the Franchise Agreement. This fee is considered earned upon receipt by Bens Soft Pretzels and is typically non-refundable.
However, there's an exception related to a program for franchisees committing to opening three stores. In this "3-Pack" program, the total initial franchise fee is $65,000, with $47,500 due upon signing the franchise agreements for all three stores. The remaining amount is paid as leases are secured for the second and third stores. The FDD states that if a franchisee enters into multiple franchise agreements to defer portions of the initial franchise fee, the initial franchise fee is not refundable under any circumstances.
Additionally, if an existing Bens Soft Pretzels franchisee decides to open additional stores during their franchise agreement term, the initial franchise fee for these subsequent stores is reduced to between $7,500 and $25,000, depending on the store type. These fees are also payable in a lump sum upon executing the franchise agreement and are not refundable under any circumstances. Therefore, regardless of whether it is the initial store or subsequent stores, the initial franchise fee is nonrefundable.