Does the use of a manager relieve a Bens Soft Pretzels franchisee of their obligations?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Franchise Agreement is made on the Effective Date designated on the Data Sheet attached as Schedule A by and between Ben's Soft Pretzels Franchising Corporation, an Indiana corporation with its principal business located at 1119 S. Indiana Avenue, Goshen, Indiana 46526 ("we" or "us"), and "Franchisee" or "you" as identified on the Data Sheet attached as Schedule A (the "Data Sheet"). If the franchisee is a corporation, partnership, limited liability company or other legal entity, certain provisions to this Agreement also apply to its owners.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
Based on the 2025 Bens Soft Pretzels Franchise Agreement, the document does not explicitly state that hiring a manager relieves a franchisee of their obligations. Instead, the franchise agreement stipulates that if the franchisee is a corporation, partnership, limited liability company or other legal entity, certain provisions of the agreement also apply to its owners. This indicates that the owners or stakeholders of the franchise are still responsible for upholding the agreement, even if a manager is in place to oversee daily operations.
This has significant implications for prospective franchisees. Even if an owner hires a manager to run the Bens Soft Pretzels store, the owner remains ultimately responsible for ensuring the store's compliance with the franchise agreement. This includes maintaining brand standards, adhering to operational procedures, and meeting financial obligations. The franchisor can hold the franchisee (and its owners) accountable for any breaches of the agreement, regardless of whether a manager caused the issue.
Therefore, franchisees should carefully select and train their managers, ensuring they are fully aware of and capable of upholding the franchise agreement's requirements. Franchisees should also implement internal controls and monitoring systems to oversee the manager's performance and ensure ongoing compliance. While a manager can handle day-to-day tasks, the franchisee's oversight and accountability remain paramount to maintaining a successful and compliant Bens Soft Pretzels franchise.