Is the license granted to a Bens Soft Pretzels franchisee exclusive?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
The license is limited to the right to develop and operate one Store at the Authorized Location only. The license granted to you does not include (i) any right to sell products and Menu Items outside the Store, except for authorized catering and delivery services as noted in subparagraph 2.E, (ii) any right to sell products and Menu Items through any other channels or methods of distribution, including the Internet (or any other existing or future form of electronic commerce), (iii) any right to sell products and Menu Items identified by the Trademarks to any person or entity for resale or further distribution, or (iv) any right to exclude, control or impose conditions on our development of future franchised, company or affiliate owned stores at any time or at any location regardless of the proximity to your Store, including Mobile Stores, which
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the license granted to a franchisee is not exclusive. The franchise agreement allows Bens Soft Pretzels to establish or license others to establish franchised, company-owned, or affiliate-owned stores at any location, regardless of proximity to a franchisee's store. This includes Mobile Stores, which can operate without any consumer protections for existing franchisees.
Bens Soft Pretzels also retains the right to merge with, acquire, or become associated with other businesses, including competitors, which may then operate under the Bens Soft Pretzels trademarks and offer similar menu items. Additionally, Bens Soft Pretzels and its affiliates can sell and distribute menu items through various channels, including grocery stores and online platforms, without compensating the franchisee.
This lack of exclusivity means that a Bens Soft Pretzels franchisee faces the risk of direct competition from other outlets of the same brand, as well as alternative distribution channels. Prospective franchisees should carefully consider this non-exclusivity and its potential impact on their business's market share and profitability. It is important to evaluate the market and potential locations thoroughly, understanding that Bens Soft Pretzels retains significant rights to expand its presence through various means, potentially impacting the franchisee's business.