What should a prospective Bens Soft Pretzels franchisee conduct an independent investigation of?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND NEW YORK STATE DEPARTMENT OF LAW, BUREAU OF INVESTOR PROTECTION AND SECURITIES, 120 BROADWAY, 23RD FLOOR, NEW YORK, NEW YORK 10271. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the New York Addendum emphasizes the importance of prospective Bens Soft Pretzels franchisees conducting their own due diligence. It explicitly states that information comparing franchisors is available from state administrators and public libraries.
Furthermore, the addendum clarifies that the registration of the Bens Soft Pretzels franchise in New York State does not constitute an endorsement or verification of the information provided in the FDD. This underscores the franchisee's responsibility to independently assess the franchise opportunity.
To ensure a well-informed decision, the New York Addendum advises potential Bens Soft Pretzels franchisees to contact the Federal Trade Commission and the New York State Department of Law if they discover any inaccuracies in the FDD. This proactive approach to verifying information is crucial for mitigating potential risks and making sound investment decisions. The addendum also states that the franchisor may negotiate with a prospective franchisee, but cannot use the negotiating process to get the franchisee to accept terms less favorable than those in the FDD.