Under what conditions might a Bens Soft Pretzels franchisee be charged a Non-Compliance Fee?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
OTHER FEES**
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Gross Sales. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, a franchisee may incur a Non-Compliance Fee if they violate any provision within the Franchise Agreement or fail to adhere to a mandatory standard or procedure. These fees currently range from $25 to $500.
The Non-Compliance Fee is in addition to any other rights that Bens Soft Pretzels has under the Franchise Agreement, including the right to terminate the agreement for defaults. This means that a franchisee could face both a monetary penalty and the potential loss of their franchise if the non-compliance is severe enough.
For a prospective Bens Soft Pretzels franchisee, this highlights the importance of thoroughly understanding and adhering to all terms and conditions outlined in the Franchise Agreement. It also emphasizes the need to comply with all mandatory standards and procedures set by the franchisor to avoid these additional fees and potential further repercussions.