Can Bens Soft Pretzels merge with businesses that compete with Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Stores at any time or at any location regardless of the proximity to your Store.
Further, we and our affiliates may, among other things, on any terms and conditions we deem advisable, without compensation to any franchisee, and without granting you any rights therein:
- (i) establish and/or license others to establish franchised or company-owned or affiliate-owned Stores at any location regardless of the proximity to your Store;
- (ii) merge with, acquire or become associated with any businesses or Stores of any kind (including those in competition with BEN'S SOFT PRETZELS) under other systems and/or other marks, which businesses and Stores may convert to or operate under the Marks and may offer or sell menu items, products and services that are the same as or similar to the Menu Items offered at or from the Store, and which may be located anywhere;
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, Bens Soft Pretzels and its affiliates have the right to merge with, acquire, or become associated with any businesses or stores of any kind, including those that compete with Bens Soft Pretzels. These businesses and stores may operate under other systems and marks, potentially converting to or operating under the Bens Soft Pretzels marks. They may also offer menu items, products, and services that are the same as or similar to those offered at a Bens Soft Pretzels store, and these businesses can be located anywhere. This action can be taken on any terms and conditions Bens Soft Pretzels deems advisable, without compensating any franchisee or granting them any rights.
This clause in the franchise agreement means that a franchisee could face direct competition from businesses that Bens Soft Pretzels acquires or merges with, even if those businesses are located near the franchisee's store. The acquired businesses could even start operating under the Bens Soft Pretzels brand, potentially drawing customers away from existing franchise locations. This lack of territorial protection is a significant risk for franchisees, as their revenue could be negatively impacted by decisions made by the franchisor.
In addition, Bens Soft Pretzels and its affiliates can sell and distribute menu items through stores or any other method of distribution under different marks. This further emphasizes the non-exclusive nature of the franchise agreement and the potential for competition from within the Bens Soft Pretzels system itself. Prospective franchisees should carefully consider these factors and evaluate the potential impact on their investment before entering into a franchise agreement with Bens Soft Pretzels.