What are the potential consequences for a Bens Soft Pretzels franchisee if they use non-approved equipment?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
E. Modernization or Replacement. From time to time as we require, you must modernize and/or replace the building, premises, trade dress, equipment, fixtures and improvements as may be necessary for your Store to conform to the standards for similarly situated new BEN'S SOFT PRETZELS stores. Furthermore, in addition to performing general continued maintenance and refreshing of the Store premises whenever necessary as set forth in subparagraph 5.C, you must make any required expenditures for equipment or leasehold improvements necessary to prepare new menu items or products.
Each and every transfer of any interest in this Agreement or your business governed by Paragraph 11 or any renewal agreement covered by Paragraph 4 is expressly conditioned upon your compliance with these modernization or replacement requirements at the time of transfer or renewal.
You acknowledge and agree that the requirements of this subparagraph 5.E are both reasonable and necessary to ensure continued public acceptance and patronage of BEN'S SOFT PRETZELS stores and to avoid deterioration or obsolescence in connection with the operation of the Store. If you fail to make any improvement as required by this subparagraph or perform the maintenance described in subparagraph 5.C, we may, in addition to our other rights in this Agreement, effect such improvement or maintenance and you must reimburse us for the costs we incur.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
Based on the 2025 Bens Soft Pretzels Franchise Agreement, franchisees are required to adhere to specific standards and requirements to maintain uniformity and protect the brand's goodwill. This includes using only menu items and other food and beverage products that Bens Soft Pretzels designates and approves in writing.
If a franchisee fails to adhere to the standards, such as using non-approved equipment, Bens Soft Pretzels has the right to take action. According to subparagraph 5.C, if a franchisee fails to perform the maintenance described, Bens Soft Pretzels may effect such maintenance and the franchisee must reimburse Bens Soft Pretzels for the costs incurred.
Furthermore, Bens Soft Pretzels can require franchisees to modernize or replace equipment to conform to the standards of new Bens Soft Pretzels stores. Failure to comply with these requirements can affect the franchisee's ability to transfer any interest in the Franchise Agreement or any renewal agreement. The agreement emphasizes that these requirements are reasonable and necessary to ensure continued public acceptance and patronage of Bens Soft Pretzels stores and to avoid deterioration or obsolescence.