What is the standard for the price determined by the appraiser(s) for the Bens Soft Pretzels store assets?

According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, if Bens Soft Pretzels exercises its right to purchase the assets of a franchisee's store, the price will be determined by a qualified appraiser. The standard for this price is the reasonable fair market value of the assets, considering their continued use in the operation of a Bens Soft Pretzels store. The appraiser will assign a price to each category of asset, such as land, building, equipment, and fixtures.

However, the valuation explicitly excludes the goodwill of the business. This exclusion is because Bens Soft Pretzels considers the goodwill to be attributable to their trademarks and overall system, not to the individual franchisee's efforts in building the business. This is a common practice in franchising, as the brand's reputation and system contribute significantly to the business's success.

This valuation method has important implications for a franchisee. When selling the store back to Bens Soft Pretzels, the franchisee will not be compensated for the intangible value they may have built through local marketing or customer relationships. The valuation focuses solely on the tangible assets and their utility within the Bens Soft Pretzels system. A prospective franchisee should consider this when evaluating the potential return on investment and exit strategy for their Bens Soft Pretzels franchise.