Ben's Soft Pretzels

The closure rate of 9.9% significantly exceeds the typical 0.0-5.6% range for quick service restaurants. Can you explain the primary reasons units are closing and what support is provided to struggling franchisees before closure occurs?

Terminations have increased from 1 in 2022 to 5 in 2024. What specific violations or performance failures trigger termination, and are there opportunities for remediation before termination is enforced?

With a 12.3% transfer rate, units are being transferred at double the typical range. What is the franchisor's approval process for transfers, and what restrictions apply to new ownership?

The initial term of 5 years is notably shorter than the typical 10.0-15.0 years. Why is the initial term structured for only 5 years, and does this shorter commitment period correlate with the higher exit rates?

The total potential contract term of 15 years is significantly below the typical 20.0-30.0 years. After two renewals, what happens if a franchisee wants to continue operating beyond 15 years?

The non-compete restriction of 1 year and 5 miles is the minimum reported for this category. Will franchisees be able to operate a competing pretzel business after termination or non-renewal within this limited restriction period?

The binding arbitration clause requires disputes to be resolved in Goshen, Indiana. How much does the franchisor typically require franchisees to contribute toward arbitration costs, and are there examples of disputes franchisees have pursued?

Personal guarantees are joint, several, and unlimited, and spouses must guarantee obligations without ownership. In cases where units have closed, what recourse has the franchisor pursued against personal guarantees and spouse guarantees?

Renewal requires meeting 7 conditions including completing modernization and securing a renewed lease. What is the typical cost of required modernization upgrades, and who bears this cost?

Item 19 financial data is available. What is the average unit volume (AUV) for operating units, and how does it compare between newer and established franchisees?

With no exclusive territory and no encroachment protection, can the franchisor or other franchisees open competing Ben's Soft Pretzel locations near your unit?

The $279.5 annual technology fee is charged in addition to royalties and ad fund. What specific technology systems and services are included, and how is this fee determined year-to-year?

Support & Training scored 88, below the typical 90.0-100.0 range. What ongoing training and support programs are provided after initial opening, and how frequently are franchisee locations visited by field support?

Given the higher termination rate of 6.2%, what are the most common reasons cited in franchise terminations over the past 3 years?

Transfer fees are $15,000. If a franchisee wants to sell to an existing Ben's Soft Pretzels franchisee, are transfer fees still charged, or are there reduced rates for internal transfers?

The franchise fee is $30,000, but total investment costs are not detailed. What is the estimated total investment required to open a new location, including equipment, real estate, working capital, and other startup costs?

No litigation appears on record, but given the elevated exit rates, have franchisees initiated complaints with state franchise regulators or informal disputes with the franchisor that were not litigated?

Unit count has grown from 82 (3 years ago) to 85 (current), a net gain of only 3 units over 3 years despite recruiting new franchisees. What is the target growth rate for the system, and how many new units are projected to open in the next 3 years?