What restrictions are placed on a Bens Soft Pretzels franchisee regarding non-competition during the term of the franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary | |
|---|---|---|---|
| o. | Franchisor’s option to purchase franchisee’s business | Section 14B | Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser appointed by us will decide. |
| p. | Death or disability of franchisee | Section 11E | You must assign franchise to an approved buyer within 180 days. All transfer provisions of section 8 of the franchise agreement apply. |
| q. | Non-competition covenants during the term of the franchise | Section 10D | No 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, nor an organization franchising a similar business (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–37)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, during the term of the franchise, a franchisee cannot operate a store or food business that includes the sale of pretzels if pretzel sales account for more than 10% of the business's overall revenue. This restriction also applies to organizations franchising a similar business, and is subject to state law.
This means that while operating a Bens Soft Pretzels franchise, you are limited in your ability to own or operate other businesses, especially those that might directly compete with Bens Soft Pretzels. The 10% threshold is important because it allows franchisees to potentially own businesses that sell pretzels as part of a broader menu, but prevents them from running a competing pretzel-focused business.
Prospective franchisees should be aware of these non-competition terms and how they might affect other business interests or plans. It is important to consult with a legal professional to understand how state laws may impact the enforcement and interpretation of these non-competition covenants.