Who is the Bens Soft Pretzels sublicense agreement binding upon?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms of Paragraph 11 hereof, this Agreement is binding upon and inures to the benefit of the administrators, executors, heirs, successors and assigns of the parties.
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.
All persons owning an interest in Franchisee that is a corporation, limited liability company, partnership or other legal entity must execute the form of undertaking and guarantee at the end of this Agreement.
Any person or entity that at any time after the date of this Agreement that becomes an owner pursuant to the provisions of Paragraph 11 or otherwise must execute the form of undertaking and guarantee at the end of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the franchise agreement is binding upon several parties. Specifically, the agreement is binding upon and benefits the administrators, executors, heirs, successors, and assigns of both parties, subject to the terms outlined in Paragraph 11 regarding transfers.
Furthermore, if the franchisee consists of two or more individuals, the agreement specifies that these individuals are jointly and severally liable. This means each individual is fully responsible for all obligations under the agreement. The agreement also stipulates that all persons owning an interest in the franchisee, if the franchisee is a corporation, limited liability company, partnership, or other legal entity, must execute a form of undertaking and guarantee. This ensures that those with a financial stake in the franchise are also bound by the agreement's terms.
Additionally, any person or entity that becomes an owner after the agreement's effective date, either through the provisions of Paragraph 11 or otherwise, must also execute the undertaking and guarantee. This provision aims to maintain a consistent level of accountability as ownership changes over time. These measures collectively ensure that the obligations and benefits of the Bens Soft Pretzels franchise agreement extend to all relevant parties involved in the franchise operation, providing clarity and legal recourse for Bens Soft Pretzels.