For Bens Soft Pretzels, what is the significance of the phrase 'good and valuable consideration' in the Rider?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, for and in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Agreement is hereby amended as follows: 1. The following language is hereby added to the end of the Agreement: "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise."
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the phrase "good and valuable consideration" appears in the context of a Rider to the Franchise Agreement. This phrase is a legal term that indicates that both Bens Soft Pretzels and the franchisee are receiving something of value in exchange for their agreement to the terms of the Rider.
In simpler terms, it means that both parties are giving up something and gaining something as part of the deal. For the franchisee, this might involve adhering to additional terms or conditions outlined in the Rider. For Bens Soft Pretzels, it could mean gaining the franchisee's agreement to operate within a specific state and under its franchise laws. The "good and valuable consideration" validates the agreement, making it legally binding.
The Rider specifically amends the Franchise Agreement to add language protecting the franchisee's rights under state franchise laws. It ensures that no statement or acknowledgment signed by the franchisee can waive claims under these laws, including claims of fraud. This provision also prevents the franchisee from disclaiming reliance on statements made by Bens Soft Pretzels or its representatives. This is a significant protection for the franchisee, ensuring they cannot inadvertently give up their legal rights. The inclusion of this clause, supported by the "good and valuable consideration," strengthens the franchisee's position and provides a legal basis for enforcing these protections.