Under what conditions will Bens Soft Pretzels approve a transfer of the franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Transfer Fee. You must pay to us a transfer fee in the amount of 50% of our thencurrent initial franchise fee. The transfer fee is nonrefundable even if, for any reason, the proposed transfer does not occur.
- D. Conditions of Transfer. We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
-
- Assignee Requirements. The assignee must meet all of our then-current requirements for our BEN'S SOFT PRETZELS franchise program we are offering at the time of the proposed transfer and sign our then-current form of franchise agreement modified to reflect the term remaining under this Agreement.
-
- Payment of Amounts Owed. All amounts owed by you to us, or any of our affiliates, your suppliers or any landlord for the Store premises and Store, or upon which we or any of our affiliates have any contingent liability must be paid in full.
-
- Reports. You must have provided all required reports to us in accordance with subparagraphs 9.G and H.
-
- Modernization. You must have complied with the provisions of subparagraph 5.E.
-
- Guarantee. In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated thereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
-
- General Release. You, each Owner and each guarantor must sign a general release of all claims arising out of or relating to this Agreement, your Store or the parties' business relationship, in the form we designate, releasing us and our affiliates.
-
- Training. The assignee must, at your or assignee's expense, comply with the training requirements of subparagraph 7.B.
-
- Financial Reports and Data. We have the right to require you to prepare and furnish to assignee and/or us such financial reports and other data relating to the Store and its operations reasonably necessary or appropriate for assignee and/or us to evaluate the Store and the proposed transfer. You agree that we have the right to confer with proposed assignees and furnish them with information concerning the Store and proposed transfer without being
-
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, the franchisor has the right to approve all franchise transfers, but will not unreasonably withhold approval.
Bens Soft Pretzels outlines specific conditions that must be met for a transfer to be approved. The potential transferee must meet all of Bens Soft Pretzels' current requirements for new franchisees and sign the then-current franchise agreement. All outstanding amounts owed to Bens Soft Pretzels, its affiliates, suppliers, or landlords must be paid. The franchisee must have provided all required reports. The franchisee must have complied with modernization requirements. In the case of an installment sale, the franchisee or owner must guarantee performance until the final close of the sale or termination of interest.
Additionally, the transferring franchisee, each owner, and each guarantor must sign a general release of all claims related to the franchise agreement, the store, or the business relationship. The transferee must also comply with Bens Soft Pretzels' training requirements at their own expense. Bens Soft Pretzels has the right to require the franchisee to provide financial reports and data relating to the store for evaluation by the transferee and/or Bens Soft Pretzels. The franchisor also has the right to confer with potential assignees and provide them with information about the store and proposed transfer without being held liable.