For how long does the non-competition covenant last after termination or expiration of a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You covenant that you will not, for a period of one year after the expiration or termination of this Agreement, or after the expiration of any Interim Period, regardless of the cause of termination, or within one year of the sale of the Store or any interest in you, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in a Competing Business:
- a. At the premises of the former Store;
- b. Within 5 miles of the Store; or
- c. Within 5 miles of any other business or store using the BEN'S SOFT PRETZELS System, whether franchised or owned by us or our affiliates.
For purposes of this Section 10.D, a Competing Business includes any store or food business which includes the sale of pretzels where the sale of pretzels is more than 10% of the overall revenue of the business.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–37)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the non-competition covenant lasts for one year after the expiration or termination of the franchise agreement. This restriction applies regardless of the cause of termination or within one year of the sale of the store or any interest in the franchisee.
Specifically, the franchisee is prohibited from owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in a Competing Business during this one-year period. A Competing Business is defined as any store or food business that includes the sale of pretzels, where pretzel sales account for more than 10% of the business's overall revenue.
The non-compete restrictions apply at the premises of the former store, within 5 miles of the former store, and within 5 miles of any other business or store using the Bens Soft Pretzels system, whether franchised or owned by Bens Soft Pretzels or its affiliates. This means that after leaving the Bens Soft Pretzels system, a former franchisee cannot immediately open a competing pretzel business in close proximity to their old location or any other Bens Soft Pretzels location.