What is the process for applying for Bens Soft Pretzels' consent to transfer the franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Conditions of Transfer. We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
-
- Assignee Requirements. The assignee must meet all of our then-current requirements for our BEN'S SOFT PRETZELS franchise program we are offering at the time of the proposed transfer and sign our then-current form of franchise agreement modified to reflect the term remaining under this Agreement.
-
- Payment of Amounts Owed. All amounts owed by you to us, or any of our affiliates, your suppliers or any landlord for the Store premises and Store, or upon which we or any of our affiliates have any contingent liability must be paid in full.
-
- Reports. You must have provided all required reports to us in accordance with subparagraphs 9.G and H.
-
- Modernization. You must have complied with the provisions of subparagraph 5.E.
-
- Guarantee. In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated thereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
-
- General Release. You, each Owner and each guarantor must sign a general release of all claims arising out of or relating to this Agreement, your Store or the parties' business relationship, in the form we designate, releasing us and our affiliates.
-
- Training. The assignee must, at your or assignee's expense, comply with the training requirements of subparagraph 7.B.
-
- Financial Reports and Data. We have the right to require you to prepare and furnish to assignee and/or us such financial reports and other data relating to the Store and its operations reasonably necessary or appropriate for assignee and/or us to evaluate the Store and the proposed transfer. You agree that we have the right to confer with proposed assignees and furnish them with information concerning the Store and proposed transfer without being
-
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, to obtain consent for a franchise transfer, several conditions must be met. First, the proposed assignee must satisfy all of Bens Soft Pretzels' then-current requirements for franchisees, including signing the current franchise agreement (modified to reflect the remaining term).
All outstanding payments owed to Bens Soft Pretzels, its affiliates, suppliers, or the landlord must be settled. The franchisee must also have submitted all required reports. Additionally, the franchisee must have met modernization requirements as outlined in the agreement. In cases of installment sales where the franchisee retains a financial interest, they (and any guarantors) must continue to guarantee performance until the sale is finalized or the interest terminates.
Furthermore, the franchisee, owners, and guarantors must sign a general release of all claims related to the franchise agreement, the store, or the business relationship with Bens Soft Pretzels and its affiliates. The assignee is also required to complete the necessary training at their own expense or the expense of the seller. Finally, Bens Soft Pretzels has the right to request and receive financial reports and other data about the store's operations to evaluate the proposed transfer, and can share information about the store and transfer with potential assignees without being held liable.