Under what condition can Bens Soft Pretzels rescind its election to assume the 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 the 2025 Bens Soft Pretzels Franchise Disclosure Document, if Bens Soft Pretzels elects to assume a lease, it is bound by the terms of any amendments to the lease executed by the tenant (the franchisee) unless Bens Soft Pretzels has given prior written approval. Bens Soft Pretzels can choose not to be bound by lease amendments the franchisee made without their approval.
This means that a prospective Bens Soft Pretzels franchisee needs to be aware that any changes they make to their lease agreement without the franchisor's explicit written consent may not be honored if Bens Soft Pretzels decides to take over the lease. This protects Bens Soft Pretzels from being obligated to terms they did not agree to.
This clause encourages franchisees to involve Bens Soft Pretzels in lease negotiations and to secure written approval for any lease amendments. It also allows Bens Soft Pretzels some flexibility in deciding whether or not to assume a lease based on the terms that were agreed upon. Franchisees should maintain open communication with Bens Soft Pretzels during the leasing process to avoid potential issues related to lease assumptions.