Besides the base rent, what other amounts is a Bens Soft Pretzels subtenant responsible for paying?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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; or in any manner which would violate any certificate of occupancy affecting the same; or which would cause structural injury to the improvements; or cause the value or usefulness of the Premises, or any part thereof, to diminish; or which would constitute a public or private nuisance or waste. Subtenant shall keep and maintain in full force and effect throughout the term of the Sublease and at Subtenant's sole cost and expense, all insurance in the form and amounts described in the Lease and the Franchise Agreement, and naming Franchisor, Sublessor (and to the extent applicable, Lessor) as an additional insured on all of same.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, a subtenant is responsible for several payments beyond the base rent. If any amount due is not paid when it becomes due, the subtenant must pay late charges, interest, and penalties as outlined in the lease. Specifically, if any amount is not received by the sublessor within five days of the due date, the subtenant will pay an additional sum of six percent (6%) of the overdue amount as a late charge.
Additionally, all amounts not paid when due will bear interest from the due date until paid at a rate of one and one-half percent (1.5%) per month. The subtenant must also maintain insurance as described in both the Lease and the Franchise Agreement, naming the Franchisor, Sublessor, and Lessor (if applicable) as additional insured parties.
Furthermore, the subtenant is responsible for assuming and performing all conditions and obligations of the sublessor under the original lease, except that all rent and other amounts payable to the Lessor under the Lease shall be paid to Sublessor. This includes indemnifying the sublessor against any liability related to the lease from the date of the sublease. The subtenant must also pay a security deposit to the sublessor, the amount of which is specified in the sublease agreement.