When are the monthly license fees due from a Bens Soft Pretzels Sublicensee to the Sublicensor?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
ending one day sooner than the ending date as provided in the License, or such earlier date as the License is terminated in accordance with the terms and provisions thereof or this Sublicense is terminated in accordance with the terms and provisions hereof (the "Term").
- 2.3 License Fees. Sublicensee agrees to pay to Sublicensor as license fees during the term of this Sublicense $200.00 per month plus all amounts which shall become due and payable by the Sublicensor under the terms of the License. All such amounts shall be due and payable by Sublicensee on or before ten (10) business days prior to the date upon which any such amounts are due and payable by Sublicensor under the terms of the License at the address of Sublicensor at 1119 S. Indiana Avenue, Goshen, Indiana 46526, or such other place as Sublicensor may from time to time designate, except that the first (1st) month's license fee shall be paid to Sublicensor concurrent with the execution of this Sublicense. Payment of said amounts shall be made by Sublicensee by check or draft made payable to Sublicensor. Sublicensor agrees to remit such amounts to Licensor or any other appropriate party in a timely fashion. The Sublicensee agrees to execute and deliver to Sublicensor the appropriate preauthorized check and electronic funds transfer forms for his store's checking account prior to the opening of the store so that Sublicensor will be able to deposit the license payments that accrue on a timely basis. The Sublicensor will then deposit the amounts due into its account by the preauthorized check or electronic funds transfer system.
- 2.4 Interest and Penalties for Late Payment. In the event any amount due hereunder is not paid when and as same becomes due, Sublicensee shall pay all late charges, interest and penalties due under the License. In addition, Sublicensee acknowledges that late payment by Sublicensee to Sublicensor of any amount due hereunder will cause Sublicensor to incur costs not contemplated by this Sublicense, 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 Sublicensor. Therefore, if any amount due hereunder from Sublicensee is not received by Sublicensor within five (5) days after its due date or, if no due date is specified in this Sublicense, within five (5) days after receipt of written notice from Sublicensor, Sublicensee shall pay to Sublicensor 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 Sublicensor will incur by reason of late payment by Sublicensee. Acceptance of any late charge shall not constitute a waiver of Sublicensee's default with respect to the overdue amount nor prevent Sublicensor fro
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, a Sublicensee must pay license fees to the Sublicensor. The monthly license fee is $200.00, in addition to any other amounts that become due and payable by the Sublicensor under the terms of the License. These amounts are due on or before ten business days prior to the date on which the Sublicensor must pay those amounts to the Licensor. The first month's license fee is due when the Sublicense is executed. Payments must be made via check or draft payable to the Sublicensor at their designated address.
To ensure timely payments, the Sublicensee must provide the Sublicensor with preauthorized check and electronic funds transfer forms for their store's checking account before opening the store. This allows the Sublicensor to deposit the license payments as they accrue. The Sublicensor is then responsible for remitting these amounts to the Licensor or any other appropriate party in a timely manner.
If the Sublicensee fails to make a payment on time, they will be subject to late charges, interest, and penalties as outlined in the License. If any amount is not received by the Sublicensor within five days of the due date, the Sublicensee will incur a late charge of six percent of the overdue amount. Additionally, all overdue amounts will accrue interest at a rate of one and one-half percent per month until paid. These late payment terms are designed to cover the costs incurred by the Sublicensor due to the late payment.