What is required for an assignment of a lease to Bens Soft Pretzels or its affiliates to be effective?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) At or after the time Franchisor assumes Tenant's interests under the Lease, the Franchisor may, at any time, assign such interests or sublet the Premises to a BEN'S SOFT PRETZELS franchisee. Any such assignment shall be subject to the prior written consent of the Landlord, which Landlord shall not unreasonably withhold as it relates to a creditworthy franchisee who otherwise meets Franchisor's then-current standards and requirements for franchisees and agrees to operate the Store as a BEN'S SOFT PRETZELS Store pursuant to a Franchise Agreement with Franchisor. Upon receipt by Landlord of an assumption agreement pursuant to which the assignee agrees to assume the Lease and to observe the terms, conditions and agreements on the part of Tenant to be performed under the Lease, the Franchisor shall thereupon be released from all liability as tenant under the Lease from and after the date of assignment, without any need of a written acknowledgement of such release by Landlord.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, if Bens Soft Pretzels assumes a tenant's interest under a lease, they have the option to assign these interests or sublet the premises to another Bens Soft Pretzels franchisee. However, this assignment is contingent upon receiving prior written consent from the landlord. This consent cannot be unreasonably withheld if the franchisee is creditworthy, meets Bens Soft Pretzels' current standards for franchisees, and agrees to operate the store as a Bens Soft Pretzels location under a franchise agreement with Bens Soft Pretzels.
To finalize the assignment, the landlord must receive an assumption agreement where the new franchisee agrees to take on the lease and adhere to its terms. Once the landlord receives this agreement, Bens Soft Pretzels is released from all liability as the tenant under the lease from the assignment date. A written acknowledgement from the landlord is not required for this release to be effective.
This clause protects Bens Soft Pretzels from ongoing liabilities once a lease is transferred to a new franchisee, provided the landlord's conditions are met. For a prospective franchisee, this means that if they take over an existing Bens Soft Pretzels location, the assignment of the lease will require landlord approval, ensuring that the new franchisee meets the necessary criteria and agrees to the lease terms. This process helps maintain the quality and consistency of the Bens Soft Pretzels brand across all locations.