Under what circumstance does the Bens Soft Pretzels franchise agreement provide for termination?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
a. Notwithstanding anything to the contrary contained in this Agreement, Franchisor may terminate this Agreement upon 60 days' written notice to Franchisee for any reason. In addition, Franchisor may terminate this Agreement if Franchisee is in default under this Agreement and fails to cure the default within the applicable cure period set forth in the Franchise Agreement. Franchisee's right to operate the Mobile Store also is contingent upon Franchisee remaining in compliance with the terms of the Franchise Agreement. Notwithstanding anything to the contrary contained herein, Franchisor may terminate this Agreement if Franchisee defaults under the Franchise Agreement or any other agreement between Franchisee and Franchisor or its affiliates and such default is non-curable or, if such default is curable, Franchisee fails to cure such default within the applicable cure period.
- b. Franchisee may terminate this Agreement upon 60 days' written notice to Franchisor.
- 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)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the franchise agreement can be terminated by either the franchisor or the franchisee under specific conditions. Bens Soft Pretzels may terminate the agreement with a 60 days' written notice to the franchisee for any reason. Additionally, Bens Soft Pretzels can terminate the agreement if the franchisee defaults and fails to correct the default within the given cure period. Termination can also occur if a franchisee defaults under any agreement with Bens Soft Pretzels or its affiliates, and the default is either non-curable or not cured within the specified time.
Conversely, the franchisee also has the right to terminate the agreement by providing Bens Soft Pretzels with a 60 days' written notice. Upon termination, the franchisee is obligated to discontinue the use of the Mobile Store at the Authorized Location, remove all Marks from the Mobile Store, and comply with all applicable post-term obligations outlined in the Franchise Agreement.
For prospective franchisees, it's crucial to understand the conditions under which the franchise agreement can be terminated, as this can significantly impact their investment and operations. The ability for Bens Soft Pretzels to terminate the agreement for any reason with 60 days' notice provides them with broad discretion, which could be a risk for franchisees. Franchisees should carefully review the default and cure provisions to understand their obligations and how to protect their investment. The franchisee's right to terminate with 60 days' notice offers some flexibility but also requires careful consideration of the post-termination obligations.