Under what condition can Bens Soft Pretzels rescind its election to assume a lease?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisor, upon taking possession of the Premises, shall cure any default specified by Landlord within the timeframes noted herein and shall execute and deliver to Landlord its assumption of Tenant's rights and obligations under the Lease. Franchisor shall pay, perform and be bound by all the duties and obligations of the Lease applicable to Tenant, except that the Franchisor may elect not to assume or be bound by the terms of any Amendment to the Lease executed by Tenant without obtaining Franchisor's prior written approval, which shall not be unreasonably withheld or delayed.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, if Bens Soft Pretzels elects to assume a lease, they may elect not to be bound by the terms of any amendment to the lease executed by the tenant (the franchisee) without obtaining Bens Soft Pretzels' prior written approval. This approval shall not be unreasonably withheld or delayed.
This means that Bens Soft Pretzels has the option to step into the franchisee's lease agreement with the landlord. However, Bens Soft Pretzels can choose not to be bound by any changes (amendments) the franchisee made to the lease without Bens Soft Pretzels' prior approval. This protects Bens Soft Pretzels from unexpected or unfavorable lease terms that the franchisee might have agreed to without their consent.
For a prospective franchisee, this clause highlights the importance of involving Bens Soft Pretzels in any lease negotiations and amendments. Failure to obtain their approval for lease changes could result in Bens Soft Pretzels refusing to assume the lease under those amended terms, potentially creating complications if the franchisee defaults and Bens Soft Pretzels considers taking over the location. It is also important to note that Bens Soft Pretzels' approval cannot be unreasonably withheld, providing some protection for the franchisee.