What is prohibited regarding the management of a Bens Soft Pretzels store's operation?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Noncompete Covenants. You agree that you will receive valuable training, Confidential Information and goodwill that you otherwise would not receive or have access to but for the rights licensed to you under this Agreement. You therefore agree to the following noncompetition covenants:
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- Unless otherwise specified, the term "you" as used in this subparagraph 10.D includes, collectively and individually, all Owners, guarantors, officers, directors, members, managers, partners, as the case may be, and holders of any ownership interest in you and any immediate family members of same including spouses and children. We may require you to obtain from your manager and other individuals identified in the preceding sentence a signed non-compete agreement in a form satisfactory to us that contains the noncompete provisions of this subparagraph 10.D.
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- You covenant that during the term of this Agreement or during any Interim Period you will not, except as we otherwise consent to in writing, and which consent shall be unreasonably withheld, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in any other store or food business other than the one authorized by this Agreement or any other agreement between us and you.
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- You covenant that you will not, for a period of one year after the expiration or termination of this Agreement, or after the expiration of any Interim Period, regardless of the cause of termination, or within one year of the sale of the Store or any interest in you, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in a Competing Business:
- a. At the premises of the former Store;
- b. Within 5 miles of the Store; or
- c. Within 5 miles of any other business or store using the BEN'S SOFT PRETZELS System, whether franchised or owned by us or our affiliates.
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For purposes of this Section 10.D, a Competing Business includes any store or food business which includes the sale of pretzels where the sale of pretzels is more than 10% of the overall revenue of the business.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, franchisees are restricted from operating any other store or food business, unless they obtain written consent from Bens Soft Pretzels. This restriction applies during the term of the Franchise Agreement, including any Interim Period. This prevents franchisees from engaging in outside ventures that could potentially conflict with or detract from their commitment to the Bens Soft Pretzels franchise.
Furthermore, for one year after the agreement expires or terminates, or within one year of selling the store, franchisees are prohibited from owning, managing, operating, or having any interest in a Competing Business. This restriction applies to the premises of the former Bens Soft Pretzels store, within 5 miles of the store, and within 5 miles of any other business using the Bens Soft Pretzels System. A Competing Business is defined as any store or food business where the sale of pretzels constitutes more than 10% of the business's overall revenue.
These non-compete covenants are in place to protect the valuable training, confidential information, and goodwill that franchisees receive as part of the Bens Soft Pretzels system. Bens Soft Pretzels may also require managers and other individuals associated with the franchisee to sign a non-compete agreement. These measures ensure that franchisees and their associates remain dedicated to the Bens Soft Pretzels brand and do not use their knowledge and resources to compete against the franchise, even after the agreement ends.