For Bens Soft Pretzels, what is the purpose of the Rider to State Addendum?
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 State Addendum is used when a franchisee is a resident of or is acquiring franchise rights in a state that requires franchise registration. The rider amends the standard Franchise Agreement to ensure compliance with the specific franchise laws of those states. This ensures that franchisees are not waiving rights available to them under state franchise laws.
The Rider specifically adds language to the Franchise Agreement stating that no statement or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including claims of fraud, or disclaim reliance on statements made by Bens Soft Pretzels. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement. The rider is only effective if the jurisdictional requirements of the applicable state's franchise law are met independently, without relying on the rider itself.
In practical terms, the Rider to State Addendum provides an additional layer of protection for franchisees in states with franchise registration laws. It modifies the standard Bens Soft Pretzels Franchise Agreement to align with state-specific requirements, preventing franchisees from inadvertently waiving their legal rights or protections. This is a common practice in franchising, as franchise laws vary significantly from state to state, and franchisors must ensure their agreements comply with these varying regulations.