Does Bens Soft Pretzels have the right to sell proprietary items associated with the system?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates also have the right to offer, sell or distribute any proprietary items or other products or services associated with the System (now or in the future) or identified by the Trademarks, or any other trademarks, service marks or trade names through any distribution channels or methods, without compensation to any franchisee. The distribution channels or methods ("Alternative Methods of Distribution") include, without limitation, grocery stores, club stores, convenience stores, wholesale, business or industry locations (e.g. manufacturing site, office building), military installations, military commissaries or the Internet (or any other existing or future form of electronic commerce).
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 and its affiliates retain the right to offer, sell, or distribute any proprietary items or other products or services associated with the System, whether these exist now or are developed in the future. This includes items identified by the Trademarks or any other trademarks, service marks, or trade names.
Bens Soft Pretzels can distribute these items through any distribution channels or methods without providing any compensation to the franchisee. These Alternative Methods of Distribution include, but are not limited to, grocery stores, club stores, convenience stores, wholesale, business or industry locations (such as manufacturing sites or office buildings), military installations, military commissaries, or the Internet, as well as any other existing or future form of electronic commerce.
This means that as a franchisee, you may face competition from Bens Soft Pretzels itself or its affiliates selling similar or identical products through various channels outside of your franchised store. You will not receive any compensation for these sales, even if they occur in your vicinity or through online platforms. This is a common practice in franchising, allowing franchisors to expand their brand reach and revenue streams, but it's crucial for franchisees to understand that their sales territory is not exclusive in this regard.