What is the process for applying for Bens Soft Pretzels' consent to transfer if the franchisee is insolvent?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Transfer Fee. You must pay to us a transfer fee in the amount of 50% of our thencurrent initial franchise fee. The transfer fee is nonrefundable even if, for any reason, the proposed transfer does not occur.
- 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:
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- 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.
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- 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.
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- Reports. You must have provided all required reports to us in accordance with subparagraphs 9.G and H.
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- Modernization. You must have complied with the provisions of subparagraph 5.E.
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- 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.
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- 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.
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- Training. The assignee must, at your or assignee's expense, comply with the training requirements of subparagraph 7.B.
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Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not provide specific procedures for seeking Bens Soft Pretzels' consent to transfer the franchise if the franchisee is insolvent. However, the document does outline general conditions for transfer.
According to the FDD, Bens Soft Pretzels requires the franchisee to pay a transfer fee equal to 50% of the then-current initial franchise fee. This fee is nonrefundable, regardless of whether the transfer is completed. Additionally, the potential assignee must meet all of Bens Soft Pretzels' current requirements for franchisees and sign the then-current franchise agreement.
Other conditions include paying all outstanding amounts owed to Bens Soft Pretzels, its affiliates, suppliers, or landlords. The franchisee must also provide all required reports and comply with any modernization requirements. Furthermore, the franchisee, each owner, and each guarantor must sign a general release of all claims related to the Franchise Agreement, the store, or the business relationship. The assignee must also comply with Bens Soft Pretzels' training requirements.
Since the FDD does not specifically address insolvency, it is important for a prospective franchisee to contact Bens Soft Pretzels directly to understand the process and requirements for transferring the franchise under such circumstances. This will help clarify any additional steps or considerations that may apply.