Under what conditions can Bens Soft Pretzels withhold consent to a franchise transfer?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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:
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- 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.
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- 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.
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- Reports. You must have provided all required reports to us in accordance with subparagraphs 9.G and H.
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- Modernization. You must have complied with the provisions of subparagraph 5.E.
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- 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.
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- 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.
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- Training. The assignee must, at your or assignee's expense, comply with the training requirements of subparagraph 7.B.
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- 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
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Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, Bens Soft Pretzels conditions its consent to any proposed franchise transfer based on several factors. The prospective franchisee (assignee) must meet all of Bens Soft Pretzels' then-current requirements for its franchise program, and must sign the then-current franchise agreement, modified to reflect the remaining term of the original agreement.
Additionally, all outstanding amounts owed by the franchisee to Bens Soft Pretzels, its affiliates, suppliers, or the landlord for the store premises must be paid in full. The franchisee must also have provided all required reports to Bens Soft Pretzels as outlined in the agreement. The franchisee must also have complied with modernization requirements.
Furthermore, if the sale is an installment sale where the franchisee retains a security interest, the franchisee and any guarantors must continue to guarantee performance under the agreement until the final close of the sale or termination of the interest. The franchisee, each owner, and each guarantor must sign a general release of all claims related to the agreement, the store, or the business relationship, releasing Bens Soft Pretzels and its affiliates. The assignee must also comply with Bens Soft Pretzels' training requirements, at their own expense. Finally, Bens Soft Pretzels has the right to require financial reports and data relating to the store to evaluate the proposed transfer.