When is the first month's license fee due from a Bens Soft Pretzels Sublicensee?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
1.3 Sublicensee's Assumption of Duties under the License. Sublicensee agrees that as of the date of this Sublicense to assume, be subject to and to perform each and every condition and obligation to be performed by Sublicensor under the provisions of the License or to which Sublicensor is subject thereunder, except that all license fees and other amounts payable to Licensor under the License shall be paid to Sublicensor in accordance with Section 2.3 hereof. Sublicensee does further agree to indemnify and save Sublicensor, its successors and assigns, harmless from and against any and all liability under or
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.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Bens Soft Pretzels does not explicitly state when the first month's license fee is due from a Sublicensee. However, Section 1.3 of Item 22 indicates that the Sublicensee assumes the duties of the Sublicensor under the License agreement, except that all license fees and other amounts payable to Licensor under the License shall be paid to Sublicensor in accordance with Section 2.3. This implies that the Sublicensee's payment schedule is tied to the original License agreement's terms, but the exact timing is not specified in this excerpt.
Section 2.4 discusses interest and penalties for late payments, stating that if any amount due is not paid when it becomes due, the Subtenant (Sublicensee) shall pay late charges, interest, and penalties under the Lease. It further clarifies that if any amount due from the Subtenant is not received by the Sublessor within five days after its due date, or within five days after receipt of written notice from Sublessor if no due date is specified, a late charge of six percent of the overdue amount will be applied. Additionally, all unpaid amounts bear interest at 1.5% per month until paid.
To fully understand the payment obligations, a prospective Bens Soft Pretzels franchisee should review the specific terms outlined in the License agreement and Section 2.3, which are referenced but not detailed in this excerpt. It is crucial to clarify the exact due dates for license fees and the procedures for payment to avoid incurring late charges and interest.