Is Bens Soft Pretzels responsible for a franchisee's pre-opening obligations, losses, or expenses?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not open your Store for business until we have notified you in writing that you have satisfied your pre-opening obligations as set forth in subparagraphs 5.A and 5.B and we have consented to your opening date. We are not responsible or liable for any of your pre-opening obligations, losses or expenses you might incur for your failure to comply with these obligations or your failure to open by a particular date. We also are entitled to injunctive relief or specific performance under subparagraph 12.C for your failure to comply with your obligations.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, Bens Soft Pretzels is not responsible or liable for any of the franchisee's pre-opening obligations, losses, or expenses. This includes any costs incurred if the franchisee fails to comply with their pre-opening obligations or if they fail to open by a particular date. This means the franchisee bears the full financial risk of preparing the store for opening.
Bens Soft Pretzels requires the franchisee to lease a site that meets their site selection guidelines, and the franchisor must provide written consent to the site. The franchisee cannot use the store premises for any purpose other than operating a Bens Soft Pretzels store. However, Bens Soft Pretzels makes no guarantees regarding the success of the store at any given site, further emphasizing that the franchisee assumes the risk.
Furthermore, the franchisee cannot open their store for business until Bens Soft Pretzels has provided written notification that the franchisee has satisfied all pre-opening obligations and has consented to the opening date. This requirement underscores the importance of the franchisee's adherence to Bens Soft Pretzels's standards and procedures during the pre-opening phase. Failure to comply with pre-opening obligations can result in Bens Soft Pretzels seeking injunctive relief or specific performance, adding another layer of potential risk for the franchisee.