How does the Bens Soft Pretzels Sublicense agreement address singular and plural references?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
If the franchisee is 2 or more individuals, the individuals are jointly and severally liable, and references to you in this Agreement includes all of the individuals.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the Sublicense agreement addresses singular and plural references specifically when the franchisee consists of two or more individuals. In such cases, the agreement stipulates that these individuals are jointly and severally liable. This means that each individual is fully responsible for all obligations and liabilities under the agreement. Furthermore, any reference to "you" within the agreement is interpreted to include all of the individuals who constitute the franchisee.
This clause has significant implications for prospective franchisees who plan to co-own a Bens Soft Pretzels franchise. Each individual owner will be held fully accountable for the franchise's performance and adherence to the franchise agreement. This joint and several liability extends to financial obligations, operational standards, and any other responsibilities outlined in the agreement. Therefore, if one partner fails to meet their obligations, the other partners can be held liable for the entirety of the debt or non-compliance.
Franchise agreements often include such clauses to ensure that the franchisor has recourse in case of default or breach of contract. By making each individual owner fully responsible, Bens Soft Pretzels aims to protect its interests and maintain the integrity of its franchise system. Prospective franchisees should carefully consider the implications of joint and several liability before entering into a franchise agreement with multiple owners. It is advisable to seek legal counsel to fully understand the risks and responsibilities involved.
In summary, the Sublicense agreement ensures that all individual owners are collectively and individually responsible for the franchise's obligations, providing Bens Soft Pretzels with a safeguard against potential liabilities and ensuring compliance with the franchise terms.