For Bens Soft Pretzels, what is the purpose of the California Addendum to the Franchise Disclosure Document?
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 addendum to the franchise agreement for the state of California is included to comply with California statutes and regulations.
Specifically, the addendum modifies the franchise agreement for California franchisees. It states that any franchisee statements or acknowledgments made during the start of the franchise relationship cannot waive claims under California franchise law, including claims of fraud, or disclaim reliance on franchisor statements. This addendum supersedes any conflicting terms in other documents related to the franchise.
For a prospective Bens Soft Pretzels franchisee in California, this addendum provides additional protection under California law. It ensures that franchisees cannot unknowingly waive their rights to make claims against the franchisor based on fraud or misrepresentation. This type of addendum is common in franchise agreements to address state-specific laws that differ from federal regulations.