What section of the Bens Soft Pretzels Franchise Agreement outlines the non-competition covenants?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary | |
|---|---|---|---|
| o. | Franchisor’s option | Section 14B | Option to purchase some or all equipment, supplies, inventory, |
| to | advertising materials and any items with our logo, for cash at | ||
| purchase | fair market value, exercisable up to 90 days after termination or | ||
| franchisee’s | expiration. If no agreement on fair market value, an appraiser | ||
| business | 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 | Section 10D | No store or food business which includes the sale of pretzels |
| covenants during | where the sale of pretzels is more than 10% of the overall | ||
| the term of the | revenue of the business, nor an organization franchising a | ||
| franchise | similar business (subject to state law). | ||
| r. | Non-competition covenants after the franchise is terminated or expires | 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 for 1 year within 5 miles of your former store location, or within 5 miles of any other BEN’S SOFT PRETZELS store. No organization franchising a similar business for 1 year. No solicitation or acceptance of business from former customers for 1 year (subject to state law). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 37–42)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the non-competition covenants are detailed in Section 10D of the Franchise Agreement. These covenants apply both during the term of the franchise and after the franchise is terminated or expires.
During the franchise term, a franchisee is restricted from operating a store or food business that includes the sale of pretzels, where pretzel sales constitute more than 10% of the business's overall revenue. They are also prohibited from being involved with an organization that franchises a similar business, subject to state law.
After the franchise ends, the franchisee is restricted for one year from operating a store or food business that includes pretzel sales exceeding 10% of overall revenue within 5 miles of their former Bens Soft Pretzels store location or any other Bens Soft Pretzels store. Additionally, they cannot be involved with an organization franchising a similar business for one year, and they are prohibited from soliciting or accepting business from former customers for one year, again subject to state law. These non-competition terms are standard in franchising to protect the brand and other franchisees in the system.