Under what circumstances does Bens Soft Pretzels have the option to purchase a franchisee's business?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Purchase Option. We have the right to purchase or designate a third party that will purchase all or any portion of the assets of your Store that are owned by you or any of your affiliates including, without limitation, the land, building, equipment, fixtures, signage, furnishings, supplies, leasehold improvements, and inventory of the Store at a price determined by a qualified appraiser (or qualified appraisers if one party believes it is better to have a real estate appraiser appraise the value of the land and building and a business appraiser appraise the Store's other assets) selected with the consent of both parties, provided we give you written notice of our preliminary intent to exercise our purchase rights under this Paragraph within 30 days after the date of the expiration or termination of this Agreement, or the expiration of any Interim Period. If the parties cannot agree upon the selection of an appraiser(s), one or both will be appointed by a Judge of the United States District Court for the District in which the Store is located upon petition of either party.
The price determined by the appraiser(s) will be the reasonable fair market value of the assets based on their continuing use in, as, and for the operation of a BEN'S SOFT PRETZELS Store and the appraiser will designate a price for each category of asset (e.g., land, building, equipment, fixtures, etc.), but shall not include the value of any goodwill of the business, as the goodwill of the business is attributable to the Trademarks and the System
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–37)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, Bens Soft Pretzels has the option to purchase a franchisee's business under specific conditions related to the termination or expiration of the franchise agreement. Bens Soft Pretzels can exercise this option to purchase some or all of the franchisee's equipment, supplies, inventory, advertising materials, and any items with their logo.
This option is exercisable for cash at fair market value within 90 days after the termination or expiration of the franchise agreement. If the franchisee and Bens Soft Pretzels cannot agree on the fair market value, an appraiser appointed by Bens Soft Pretzels will make the final determination.
Additionally, Bens Soft Pretzels retains the right to purchase the assets of the store, including land, building, equipment, fixtures, signage, furnishings, supplies, leasehold improvements, and inventory. To exercise this right, Bens Soft Pretzels must provide written notice of their intent within 30 days after the expiration or termination of the agreement, or the expiration of any Interim Period. The purchase price will be determined by a qualified appraiser selected with the consent of both parties, or by a judge if an agreement cannot be reached. The appraised value will be based on the assets' continuing use in a Bens Soft Pretzels store, excluding any goodwill associated with the trademarks and system.