Does Bens Soft Pretzels offer franchisees a protected territory or exclusive area?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
e regardless of where they reside or any other factor. We will not be required to pay you any compensation for any Mobile Stores that conduct business near your Store.
We and our affiliates retain all rights that are not expressly granted to you under this Agreement. 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 of such stores to your Designated Area;
- (ii) merge with, acquire or become associated with ("Merger/Acquisition Activity") any businesses or stores of any kind (including those in competition with BEN'S SOFT PRETZELS) under other systems and/or marks, which businesses and stores may convert to or operate under the Trademarks 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; and
- (iii) sell and distribute for ourselves and/or license others to sell and distribute through franchised businesses or any other method of distribution menu items the same as or different from the Menu Items offered under the System, and which are offered and distributed under marks different than the Trademarks.
We and our affiliates also have the right to offer, sell or distribute any proprietary items or other products or services associated with the System (now or in the future) or identified by the Trademarks, or any other trademarks, service marks or trade names through any distribution channels or methods, without compensation to any franchisee. The distribution channels or methods ("Alternative Methods of Distribution") include, without limitation, grocery stores, club stores, convenience stores, wholesale, business or industry locations (e.g. manufacturing site, office building), military installations, military commissaries or the Internet (or any other existing or future form of electronic commerce).
You acknowledge and agree that certain locations are by their nature unique and separate in character from sites generally developed as BEN'S SOFT PRETZELS stores.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 FDD, Ben's Soft Pretzels franchise agreements do not typically grant franchisees an exclusive or protected territory. The franchisor retains the right to establish or license other franchised, company-owned, or affiliate-owned stores at any location, regardless of proximity to an existing franchisee's location. This means that Ben's Soft Pretzels can open new stores near a franchisee without providing any compensation.
Ben's Soft Pretzels also maintains the right to engage in activities such as mergers or acquisitions with other businesses, even those that compete with Ben's Soft Pretzels. These acquired businesses may then operate under the Ben's Soft Pretzels trademarks and offer similar menu items, potentially increasing competition for franchisees. Additionally, Ben's Soft Pretzels and its affiliates can sell and distribute menu items through various channels, including grocery stores and online platforms, without compensating franchisees.
Notably, the FDD mentions "Special Site" locations such as military bases, airports, and amusement parks, which Ben's Soft Pretzels can develop or franchise regardless of their proximity to a franchisee's store. The only exception to this lack of protected territory is for Mobile Stores, where a Designated Area may be defined in a Mobile Store Addendum. However, even in this case, the agreement explicitly states that there is "no exclusive or protected territory or area of any kind".
For a prospective franchisee, this means that there is a risk of direct competition from other Ben's Soft Pretzels locations or alternative distribution channels. Franchisees should carefully consider the potential impact of this non-exclusivity on their business's profitability and market share. It is crucial to assess the local market conditions and potential for competition before investing in a Ben's Soft Pretzels franchise.