What is the purpose of this Rider to the Bens Soft Pretzels Franchise Agreement?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider to State Addendum to BEN'S SOFT PRETZELS ® Franchise Disclosure Document and Franchise Agreement is entered into by and between Ben's Soft Pretzels Franchising Corporation, 1119 S. Indiana Avenue, Goshen, Indiana 46526 ("we" or "us") and ("you"). |
|---|
| A. |
| This Rider is being signed because you are a resident of one of the states listed in |
| the heading of this Rider (the "Applicable Franchise Registration State") or a non-resident who is |
| acquiring franchise rights permitting the location of one or more BEN'S SOFT PRETZELS ® |
| businesses in the Applicable Franchise Registration State. |
| B. |
| We and you have contemporaneously herewith entered into a Franchise |
| Agreement (the "Agreement") and wish to amend the Agreement as provided herein. |
| NOW, THEREFORE, for and in consideration of good and valuable consideration, the |
| receipt and sufficiency of which are hereby acknowledged, the Agreement is hereby amended as |
| follows: |
| 1. |
| The following language is hereby added to the end of the Agreement: "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." |
| 2. |
| Except as provided in this Rider, the Agreement remains in full force and effect in |
| accordance with its terms. This Rider shall be effective only to the extent that the jurisdictional |
| requirements of the franchise law of the Applicable Franchise Registration State are met |
| independently without reference to this Rider. |
| YOU: |
| WE: |
| BEN'S SOFT PRETZELS |
| FRANCHISING CORPORATION |
| By |
| By |
| Title |
| Title |
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the Rider to the State Addendum modifies the Franchise Agreement for franchisees who are residents of or are acquiring franchise rights in an "Applicable Franchise Registration State." This ensures compliance with state franchise laws. The Rider is signed by both Bens Soft Pretzels Franchising Corporation and the franchisee.
The Rider specifically adds language to the end of the Franchise Agreement to protect the franchisee. It ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including claims of fraud in the inducement. It also prevents the franchisee from disclaiming reliance on statements made by the franchisor or its representatives. This provision takes precedence over any conflicting terms in other documents related to the franchise.
Except for the modifications outlined in the Rider, the original Franchise Agreement remains in full effect. The Rider's effectiveness is contingent upon meeting the jurisdictional requirements of the franchise law in the relevant state, independent of the Rider itself. This means that the Rider is only applicable if the underlying franchise agreement already complies with state law, and the Rider serves to further protect the franchisee's rights within that legal framework.
In essence, the Rider acts as a safeguard for franchisees, reinforcing their rights under state franchise laws and preventing unintentional waivers of those rights through standard franchise documents. This is a fairly common practice in franchising, as franchisors often need to tailor their agreements to comply with specific state regulations, particularly in states with franchise registration and disclosure laws.