Can Bens Soft Pretzels sell proprietary items through alternative distribution channels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we and our affiliates 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 ("Alternative Methods of Distribution") including, 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.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, Bens Soft Pretzels retains the right to sell proprietary items or other products/services associated with the Bens Soft Pretzels system through various distribution channels. 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. This means that while franchisees operate their stores, Bens Soft Pretzels can also market and sell its products through other avenues, potentially reaching a broader customer base without direct franchisee involvement.
This aspect of the franchise agreement has several implications for prospective franchisees. On one hand, it could lead to increased brand recognition and overall demand for Bens Soft Pretzels products, which might indirectly benefit franchisees. However, it also presents a risk of competition. If Bens Soft Pretzels sells its products through alternative channels in the same geographic area as a franchise location, it could potentially draw customers away from the franchise, impacting its sales and profitability. Franchisees do not receive compensation from Bens Soft Pretzels for sales made through these alternative channels.
It is common for franchisors to reserve the right to explore alternative distribution channels to expand their brand presence and revenue streams. However, prospective Bens Soft Pretzels franchisees should carefully consider the potential impact of these alternative distribution methods on their own business. Understanding the specific plans Bens Soft Pretzels has for these channels in their target market is crucial. Franchisees should inquire about the potential for overlap and competition, as well as any strategies Bens Soft Pretzels has in place to mitigate potential negative impacts on franchisee sales.