What is the variance threshold on a subsequent audit of a Bens Soft Pretzels franchise that could lead to termination?

Based on the 2025 Franchise Disclosure Document, the FDD does not specify a particular variance threshold on a subsequent audit that could lead to the termination of a Bens Soft Pretzels franchise. The document does outline general conditions under which the franchise agreement can be terminated.

According to Item 22, the franchisor, Ben's Soft Pretzels Franchising Corporation, may terminate the agreement if the franchisee defaults and fails to cure the default within the specified cure period. The right to operate a Mobile Store is contingent upon compliance with the Franchise Agreement. The franchisor can terminate the agreement if the franchisee defaults under the Franchise Agreement or any other agreement with the franchisor or its affiliates, especially if the default is non-curable or uncured within the applicable period.

Prospective franchisees should carefully review the entire Franchise Agreement, particularly the sections detailing defaults, cure periods, and termination conditions. It is essential to understand what constitutes a default and what steps are required to cure such a default to avoid potential termination. Franchisees should seek clarification from the franchisor regarding specific audit variance thresholds and their potential impact on the franchise agreement.