Ben's Soft Pretzels Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$90,000 - $344,500
Franchise Fee
$5,000
Total US Locations
81
Business Summary
Ben's Soft Pretzels Franchising Corporation grants the right to operate a BEN'S SOFT PRETZELS Store, which offers soft pretzels, pretzel pockets, soft drinks, and other menu items. Stores typically range from 290 to 1,100 square feet and can be located in traditional retail spaces, captive venues like airports or stadiums, or through mobile food trucks or trailers. The business utilizes a proprietary system of procedures, techniques, and recipes to prepare and serve its food products.
Corporate History
Ben's Soft Pretzels Franchising Corporation was formed in Indiana on November 1, 2012, and began offering franchises in January 2013. While the franchising corporation itself has not operated BEN'S SOFT PRETZELS stores, affiliates related by common ownership have been operating BEN'S SOFT PRETZELS stores since 2008. The company focuses on franchising independently owned stores and providing franchise support, and it also offers a license program for qualifying food service operators. The company operates under its corporate name and the tradename BEN'S SOFT PRETZELS.
Financial Overview
Investment Range
$90,000 - $344,500
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
1.5%
Equipment Costs (Low)
$40,000
Equipment Costs (High)
$205,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Ben's Soft Pretzels Franchising Corporation's financial statements are audited and received an unqualified opinion from its auditor, indicating they present fairly its financial position. The company's cash balances exceeded the FDIC insured limit by $104,771 as of December 31, 2023. The company also has significant related party receivables totaling $525,533 as of December 31, 2023, including advances to affiliates for various purposes. Long-term debt includes a new note payable of $239,033 in 2023, collateralized by a building. There were no going concern qualifications.
Financing Details
Ben's Soft Pretzels Franchising Corporation does not offer any direct or indirect financing to its franchisees. This means franchisees must secure their own funding, and the franchisor does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
81
Franchised Units
75
Corporate Units
6
Avg Square Footage
695
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Ben's Soft Pretzels Franchising Corporation has no litigation history to disclose in this item.
Bankruptcy History
Ben's Soft Pretzels Franchising Corporation has no bankruptcy history to disclose in this item.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Ben's Soft Pretzels franchise, franchisees must provide written notice of intent to renew between 6 and 12 months before the current term expires. They must be in good standing, having substantially complied with the agreement and satisfied all financial obligations on time. Franchisees must also refurbish or remodel their premises and replace vehicles and equipment to meet the franchisor's then-current standards. Finally, they will need to sign a new franchise agreement, which may have materially different terms and conditions, including potentially higher fees and different territorial rights, and execute a general release of claims.
Training & Support Program
Franchisor Assistance
Ben's Soft Pretzels Franchising Corporation provides extensive assistance to its franchisees. Before opening, the franchisor helps with site selection criteria, building and design requirements, and provides lists of approved suppliers and supplies. Franchisees also receive an operations manual, initial training programs, and opening support. Ongoing assistance includes maintaining an advertising fund, providing updates to approved lists and new product research, periodic store visits for consultation, and refresher training courses that may occur at annual conventions. Franchisees also receive continuous communication and support, manual updates, and technical assistance via telephone. The franchisor manages advertising and marketing programs, including a national advertising fund and a proprietary point-of-sale system.
Initial Training Hours
43
Training Location
Goshen, Indiana (with virtual training options for some subjects)
Ongoing Support
After opening, Ben's Soft Pretzels Franchising Corporation provides ongoing assistance to franchisees. This includes maintaining the advertising fund, offering updates to approved supplier and product lists, and continuously researching and developing new products. Franchisees also receive periodic store visits for consultation and guidance, and are required to attend refresher training courses, regional meetings, and annual conventions (up to five days per calendar year, with a $500 convention fee). The franchisor offers ongoing communication, support, updates to the operations manual, and technical assistance via telephone.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Ben's Soft Pretzels Franchising Corporation grants the right to operate a traditional store at a specific authorized location without a defined territory size. For Mobile Stores, the franchisor designates a non-exclusive geographic area of operation, known as a 'Designated Area.' The size of this Designated Area is determined generally by factors such as population density, income level, and the number of households and businesses in the area. These areas can be defined using zip codes, a map, or a radius around the Mobile Store's authorized location.
Staffing Notes
Ben's Soft Pretzels Franchising Corporation requires franchisees to employ a sufficient number of competent and trained employees to ensure efficient customer service. Franchisees are solely responsible for all employment-related matters, including hiring, discharging, setting wages, and benefits. The franchisor explicitly states it has no responsibility regarding these matters. Managers and other employees who receive training from Ben's Soft Pretzels Franchising Corporation may be required to sign non-compete agreements.