Can Bens Soft Pretzels require a non-compete agreement from my manager?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Noncompete Covenants. You agree that you will receive valuable training, Confidential Information and goodwill that you otherwise would not receive or have access to but for the rights licensed to you under this Agreement. You therefore agree to the following noncompetition covenants:
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- Unless otherwise specified, the term "you" as used in this subparagraph 10.D includes, collectively and individually, all Owners, guarantors, officers, directors, members, managers, partners, as the case may be, and holders of any ownership interest in you and any immediate family members of same including spouses and children. We may require you to obtain from your manager and other individuals identified in the preceding sentence a signed non-compete agreement in a form satisfactory to us that contains the noncompete provisions of this subparagraph 10.D.
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- You covenant that during the term of this Agreement or during any Interim Period you will not, except as we otherwise consent to in writing, and which consent shall be unreasonably withheld, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in any other store or food business other than the one authorized by this Agreement or any other agreement between us and you.
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- You covenant that you will not, for a period of one year after the expiration or termination of this Agreement, or after the expiration of any Interim Period, regardless of the cause of termination, or within one year of the sale of the Store or any interest in you, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in a Competing Business:
- a. At the premises of the former Store;
- b. Within 5 miles of the Store; or
- c. Within 5 miles of any other business or store using the BEN'S SOFT PRETZELS System, whether franchised or owned by us or our affiliates.
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For purposes of this Section 10.D, a Competing Business includes any store or food business which includes the sale of pretzels where the sale of pretzels is more than 10% of the overall revenue of the business.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, Bens Soft Pretzels may require a non-compete agreement from your manager. The agreement would be in a form satisfactory to Bens Soft Pretzels and contain the non-compete provisions outlined in the franchise agreement. The term "you" in the non-compete context includes owners, guarantors, officers, directors, members, managers, partners, and their immediate family members. This means the non-compete obligations extend beyond just the franchisee.
The non-compete covenant restricts you (and related parties) from owning, managing, operating, or having any interest in another store or food business (other than the franchised Bens Soft Pretzels location) during the term of the Franchise Agreement. This restriction applies unless Bens Soft Pretzels provides written consent, which they are not obligated to provide.
After the agreement expires or terminates, or after the sale of the store, a one-year non-compete period begins. During this time, you cannot engage in a "Competing Business" within specific locations. A Competing Business is defined as any store or food business where the sale of pretzels accounts for more than 10% of the business's overall revenue. The restricted locations include the former store premises, within 5 miles of the store, and within 5 miles of any other Bens Soft Pretzels location.