factual

After termination of a Bens Soft Pretzels franchise, what payments are the franchisee responsible for?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer from 2025 FDD Document

  • c. In the event of termination, Franchisee must discontinue the use of the Mobile Store at the Authorized Location, remove all Marks from the Mobile Store, and take all necessary steps to comply with the applicable post-term obligations of the Franchise Agreement that are applicable to the Mobile Store.

Source: Item 22 — CONTRACTS (FDD pages 46–47)

What This Means (2025 FDD)

Based on the 2025 Bens Soft Pretzels Franchise Disclosure Document, in the event of termination of the Mobile Store Program Agreement, the franchisee is obligated to discontinue the use of the Mobile Store at the Authorized Location. They must also remove all Marks (trademarks, logos, etc.) from the Mobile Store. Furthermore, the franchisee is required to take all necessary steps to comply with the applicable post-term obligations of the Franchise Agreement that are applicable to the Mobile Store.

This means that upon termination, a franchisee cannot continue to operate the mobile store under the Bens Soft Pretzels brand or use any of its branding. The franchisee must adhere to all post-termination obligations outlined in the Franchise Agreement, which could include non-compete clauses or other restrictions.

Prospective franchisees should carefully review the Franchise Agreement to understand the full scope of their post-termination obligations, as these can significantly impact their ability to operate a similar business after the franchise agreement ends. It is important to seek legal counsel to fully understand these obligations and their potential implications.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.