What happens if a Bens Soft Pretzels franchisee does not maintain required insurance?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
- (6) If you do not maintain insurance on the Store as we require, we may, at our option and in addition to our other rights and remedies, obtain the insurance and keep the same in full force and effect on your behalf, and you shall reimburse us for all premiums and other expenses incurred by us in connection with obtaining such insurance.
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance | Reimburse the insurance premiums and other expenses incurred by us. | As incurred. | See Note 5. You may incur additional insurance expense if operating a Mobile Store. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance for their store, Bens Soft Pretzels has the option to obtain the insurance on the franchisee's behalf. This is in addition to any other rights and remedies Bens Soft Pretzels may have.
The franchisee is then responsible for reimbursing Bens Soft Pretzels for all premiums and expenses incurred in obtaining the insurance. This ensures that the store remains insured, protecting both the franchisee and Bens Soft Pretzels from potential liabilities.
Item 6 also includes a table that lists 'Insurance' as a fee, stating that the franchisee must reimburse the insurance premiums and other expenses incurred by Bens Soft Pretzels. The remarks section of the table refers to Note 5 and indicates that additional insurance expenses may occur if operating a Mobile Store. The franchisee is responsible for these costs as they are incurred.