For Bens Soft Pretzels, what is the purpose of the California Addendum?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
This addendum pertains to franchises sold in the state of California and is for the purpose of complying with California statutes and regulations. Notwithstanding anything that may be contained in the body of the agreement to the contrary, the agreement is amended as follows:
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- In Section 15.B of the Franchise Agreement, the third paragraph is deleted.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- In all other respects, the Franchise Agreement will be construed and enforced according to its terms.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the California Addendum is included to ensure compliance with California's specific franchise statutes and regulations. This addendum modifies the standard franchise agreement to align with California law. It applies to all Bens Soft Pretzels franchises sold in California.
The addendum specifically addresses certain clauses within the franchise agreement. For instance, it removes the third paragraph of Section 15.B of the Franchise Agreement. Additionally, it clarifies that no agreement signed by the franchisee can waive claims related to state franchise law, including those concerning fraud, or disclaim reliance on statements made by the franchisor. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.
In practical terms, this means that Bens Soft Pretzels franchisees in California have additional protections under state law that are explicitly preserved by the addendum. The addendum ensures that franchisees cannot inadvertently waive their rights or be prevented from pursuing claims of fraud against the franchisor. This type of addendum is common in franchise agreements to address state-specific legal requirements, particularly in states with strong franchise protection laws like California.
Prospective franchisees should carefully review the California Addendum to understand their rights and obligations under California law. They should also consult with a legal professional to ensure they fully understand the implications of the addendum and how it affects their franchise agreement with Bens Soft Pretzels.