How are amounts due to Bens Soft Pretzels paid?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
riate preauthorized check and electronic funds transfer forms for his Store's checking account prior to the opening of the Store so that Sublessor will be able to deposit the Sublease payments that accrue on a timely basis. The Sublessor will then deposit the amounts due into its account by the preauthorized check or electronic funds transfer system.
- 2.4 Interest and Penalties for Late Payment. In the event any amount due hereunder is not paid when and as same becomes due, Subtenant shall pay all late charges, interest and penalties due under the Lease. In addition, Subtenant acknowledges that late payment by Subtenant to Sublessor of any amount due hereunder will cause Sublessor to incur costs not contemplated by this Sublease, the exact amount of such costs being extremely difficult and impractical to fix. Such costs include, without limitation, processing and accounting charges, in addition to other charges that may be imposed on Sublessor. Therefore, if any amount due hereunder from Subtenant is not received by Sublessor within five (5) days after its due date or, if no due date is specified in this Sublease, within five (5) days after receipt of written notice from Sublessor, Subtenant shall pay to Sublessor an additional sum of six percent (6%) of the overdue amount as a late charge. The parties agree that this late charge represents a fair and reasonable estimate of the costs that Sublessor will incur by reason of late payment by Subtenant. Acceptance of any late charge shall not constitute a waiver of Subtenant's default with respect to the overdue amount nor prevent Sublessor from exercising any of the other rights and remedies of the Sublessor under this Sublease. In addition, all amounts not paid to Sublessor when and as same become due hereunder shall bear interest from the date due until paid at the rate of one and one-half percent (1.5%) per month until paid.
3. USE, ALTERATIONS, INSURANCE, AND SECURITY DEPOSIT
3.1 Use. The Premises shall be used and occupied only for the purpose of operating a Ben's Soft Pretzels store pursuant to the terms and provisions of the Franchise Agreement.
- 3.2 Alterations and Improvements. Subtenant shall not make any alterations or improvements to the Premises without the prior written consent of Sublessor and of Lessor, if required, under the Lease. In the event that Sublessor, and if applicable, Lessor does give prior written consent for any alterations or improvements to the Premises, on request of Sublessor or Lessor, if applicable, Subtenant shall restore the Premises to the same good order and condition in which it was prior to the making of such alterations or improvements, or if not otherwise requested prior to the last day of the Term hereof, on or before said date.
- 3.3 Insurance. Subtenant will not permit the Premises to be used in any manner which would render the insurance thereon void or the insurance risk more hazardous. Subtenant shall not use or occupy the Premises, or permit the Premises to be used or occupied, contrary to any statute, rule, order, ordinance, requirement or regulation applicable thereto;
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels FDD, payments can be made via preauthorized check or electronic funds transfer. The ACH Recurring Payment Authorization Form outlines how a franchisee can schedule payments to be automatically deducted from their checking or savings account. This authorization remains in effect until the franchisee cancels it in writing, providing written notification to Ben's Soft Pretzels Franchising Corp. at least 15 days before the next billing date.
If a payment date falls on a weekend or holiday, the payment may be executed on the next business day. Because these are electronic transactions, funds may be withdrawn as soon as the transaction dates occur. If an ACH transaction is rejected due to Non-Sufficient Funds (NSF), Ben's Soft Pretzels Franchising Corp may attempt to process the charge again within 30 days and will charge an additional $100 for each NSF attempt.
Late payments are subject to interest and penalties. If any amount due is not paid when due, the franchisee will pay all late charges, interest, and penalties outlined in the lease. If payment is not received within five days after the due date, or within five days of written notice if no due date is specified, a late charge of six percent (6%) of the overdue amount will be applied. Additionally, all unpaid amounts bear interest from the due date until paid at a rate of one and one-half percent (1.5%) per month.