What does a Bens Soft Pretzels Sublicensee waive regarding security held by the Licensor?

Based on the 2025 Bens Soft Pretzels Franchise Disclosure Document, a Sublicensee agrees to look only to the Licensor, and not to the Sublicensor, for remedies of any breaches in the License by Licensor. The Sublicensor has no liability for any breach by the Licensor affecting the Sublicensee. This means that if the Licensor fails to meet its obligations under the License agreement, the Sublicensee must pursue remedies directly with the Licensor. The Sublicensee cannot hold the Sublicensor responsible for the Licensor's actions or failures. This allocation of responsibility is outlined in the Sublicense agreement.

This arrangement is significant for a prospective Bens Soft Pretzels franchisee because it clarifies the lines of accountability between the Licensor and Sublicensor. The franchisee, as a Sublicensee, needs to understand that their recourse for any issues related to the License lies solely with the Licensor. This could impact the franchisee's strategy for resolving disputes or seeking compensation for damages.

It is important for a potential Bens Soft Pretzels franchisee to carefully review the License agreement and understand the obligations of the Licensor. They should also assess the financial stability and reputation of the Licensor to determine the potential risk of breaches. Additionally, the franchisee should consider including provisions in their agreement that protect their interests in the event of a breach by the Licensor, such as requiring the Licensor to maintain adequate insurance coverage or providing for alternative dispute resolution methods.