What is the purpose of the Bens Soft Pretzels Sublicense Agreement?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
he License from and after said date.
1.4 Sublicensor Has Rights of Licensor. It is further agreed, that as to Sublicensee, Sublicensor shall have all rights of Licensor as described in the License and all rights granted to Sublicensor herein.
2. SUBLICENSE, TERM AND LICENSE FEE
- 2.1 Sublicense of Premises. Sublicensor hereby sublicenses the Premises to Sublicensee solely for the purpose of operating a Ben's Soft Pretzels store pursuant to the terms and provisions of the Franchise Agreement and agrees that so long as Sublicensee is in compliance with the terms hereof, of the License, and of the Franchise Agreement Sublicensee shall have the right to utilize the Premises without hinderance or molestation by Sublicensor. By execution hereof, Sublicensee accepts the Premises and acknowledges that the location and condition of the Premises is acceptable to Sublicensee and hereby waives any claims or rights against Sublicensor of or related to the condition or location of the Premises.
- 2.2 Term. The term of this Sublicense shall be for the term commencing on the date as provided in the License and 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.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the Sublicense Agreement allows the Sublicensor to sublicense the premises to the Sublicensee for the purpose of operating a Bens Soft Pretzels store, under the terms of the Franchise Agreement. As long as the Sublicensee complies with the terms of the Sublicense, the License, and the Franchise Agreement, they have the right to use the premises without interference from the Sublicensor. The Sublicense is subject to the original License agreement, and the Sublicensee must look to the Licensor, not the Sublicensor, for remedies if the Licensor breaches the License. The Sublicensor isn't liable for any breaches by the Licensor that affect the Sublicensee.
The Sublicensee assumes and must perform all conditions and obligations of the Sublicensor under the License, except that payments normally made to the Licensor are instead paid to the Sublicensor. The Sublicensee also agrees to protect the Sublicensor from any liability related to the License from the date of the Sublicense onward. The Sublicensor has all the rights of the Licensor regarding the Sublicensee, as described in both the License and the Sublicense agreement.
In practical terms, this means a franchisee entering a Sublicense Agreement with Bens Soft Pretzels needs to understand their obligations extend to both the Sublicense and the original Franchise Agreement. They are essentially stepping into the shoes of the Sublicensor concerning the operation of the Bens Soft Pretzels store at the specified premises. However, they also need to be aware that their recourse for issues related to the overarching License agreement lies with the Licensor, not the party they directly sublicense from. This arrangement adds a layer of complexity, requiring franchisees to carefully review all three agreements (Franchise Agreement, License, and Sublicense) to fully understand their rights and responsibilities.