From what date does interest accrue on unpaid amounts from a Bens Soft Pretzels Sublicensee?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, any amounts not paid to the Sublessor (Bens Soft Pretzels) by a Sublicensee when due will accrue interest. The interest is calculated from the original due date until the payment is made in full.
The interest rate applied to these overdue amounts is 1.5% per month. This can result in a substantial additional cost if payments are not made on time.
In addition to interest, Bens Soft Pretzels also charges a late fee. If payment is not received within five days of the due date, the Sublicensee will be charged a late fee of 6% of the overdue amount. This late charge is intended to cover the costs incurred by the Sublessor due to the late payment. It's important to note that acceptance of a late charge does not waive the Sublessor's right to pursue other remedies for the default.