When does the late charge apply to overdue amounts from a Bens Soft Pretzels subtenant?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
lease, 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.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, a late charge applies to overdue amounts from a subtenant if payment is not received within a specific timeframe. If the subtenant fails to pay any amount due to the sublessor, the subtenant will incur late charges, interest, and penalties as outlined in the lease agreement.
Specifically, if the sublessor does not receive the amount due from the subtenant within five days after the due date, a late charge will be applied. If no due date is specified in the sublease, the late charge applies five days after the subtenant receives written notice from the sublessor. The late charge is calculated as six percent (6%) of the overdue amount.
In addition to the late charge, all overdue amounts will accrue interest from the original due date until they are paid. The interest rate is set at one and one-half percent (1.5%) per month. Bens Soft Pretzels emphasizes that accepting a late charge does not waive the subtenant's default regarding the overdue amount, and the sublessor retains all other rights and remedies under the sublease.