What costs are included in the Sublicensor's expenses that a Bens Soft Pretzels Sublicensee must pay?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
d hereby and Sublicensor shall have the right without further notice to reenter the Premises and take possession of all property thereon, to exclude the Sublicensee therefrom, and to hold and possess the Premises and in addition to such other rights and remedies as Sublicensor may have in law or in equity.
4.2 Payment of Expenses. Sublicensee shall pay upon demand all of Sublicensor's costs, charges and expenses including fees of attorneys, agents and others retained by Sublicensor, incurred in enforcing any of the obligations of Sublicensee under this Sublicense or in any litigation, negotiation or transaction in which Sublicensor shall, without Sublicensor's fault, become involved through or on account of this Sublicense.
4.3 Licensor's Remedies. In the event of a default in any term, covenant or condition on the Sublicensee's part to be performed under the License, Licensor shall have the right, but not the obligation, to pursue the remedies available to it under the License or otherwise, directly against Sublicensee without prejudice to its rights to pursue Sublicensor jointly or severally in the same manner. Sublicensor, at its election, may require Licensor to (a) proceed against Sublicensee;
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, a Sublicensee is responsible for covering the Sublicensor's costs, charges, and expenses under certain conditions. Specifically, the Sublicensee must pay all of the Sublicensor's costs, charges, and expenses, including attorney's fees, agent fees, and other fees for retained individuals. These expenses are related to enforcing the Sublicensee's obligations under the Sublicense agreement.
Additionally, if the Sublicensor becomes involved in any litigation, negotiation, or transaction due to the Sublicense without any fault of their own, the Sublicensee is responsible for covering all associated costs. This means that if a Sublicensee's actions or inactions lead to legal or transactional issues for the Sublicensor, the Sublicensee will bear the financial burden.
Furthermore, if the Sublicensee fails to make payments on time, they are responsible for late charges, interest, and penalties as outlined in the License. A late charge of 6% of the overdue amount will be applied if payment is not received within five days of the due date or five days after receiving written notice from the Sublicensor if no due date is specified. Interest will accrue on all overdue amounts at a rate of 1.5% per month until paid. These financial repercussions underscore the importance of adhering to the payment terms outlined in the Sublicense agreement to avoid incurring additional expenses.