Are the obligations and authorizations under the Bens Soft Pretzels sublease joint, several, or both?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS SUBLEASE is made and entered into as of this day of, 20, by and between Ben's Soft Pretzels LLC, an Indiana limited liability company, ("Sublessor"), and and (jointly and severally, and collectively, referred to as "Subtenant").
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the obligations and authorizations under the sublease are structured as joint and several. This means that if the Subtenant consists of multiple parties, each party is individually liable for the full amount of the obligations, as well as collectively liable. Bens Soft Pretzels can pursue any one or all of the subtenants for the full performance of the sublease obligations.
For a prospective Bens Soft Pretzels franchisee, this has significant implications. If you are entering into a sublease with partners or other entities, you must understand that you are not only responsible for your portion of the obligations but also for the entire amount if your partners fail to meet their obligations. This joint and several liability extends to all aspects of the sublease, including rent payments, maintenance, and adherence to the lease terms.
This arrangement protects Bens Soft Pretzels by ensuring they can recover fully regardless of the internal arrangements or financial capabilities of the subtenants. Franchisees should carefully consider this liability and ensure they have agreements in place with their partners to allocate responsibility and protect themselves from potential defaults by other parties to the sublease.