Can Bens Soft Pretzels profit from goods sold to franchisees?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bens Soft Pretzels and its affiliates retain rights not expressly granted to franchisees, including the ability to sell and distribute menu items through various methods of distribution without compensating franchisees. This includes selling through franchised businesses or any other distribution method, even under different trademarks.
Specifically, Bens Soft Pretzels and its affiliates can offer, sell, or distribute proprietary items or other products and services associated with the Bens Soft Pretzels system through any distribution channels or methods. These Alternative Methods of Distribution include grocery stores, club stores, convenience stores, wholesale, business or industry locations, military installations, military commissaries, or the Internet.
This means that Bens Soft Pretzels can profit from selling goods and services through channels that may compete with a franchisee's store, without providing any compensation to the franchisee. This could impact a franchisee's revenue if customers can purchase Bens Soft Pretzels products elsewhere. Prospective franchisees should consider this when evaluating the potential profitability of a Bens Soft Pretzels franchise and how these alternative distribution methods might affect their business.