What right does Bens Soft Pretzels reserve regarding the due date for amounts owed?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event any amount due hereunder is not paid when and as same becomes due, Subtenant shall pay all late charges, interest and penalties due under the Lease.
In addition, Subtenant acknowledges that late payment by Subtenant to Sublessor of any amount due hereunder will cause Sublessor to incur costs not contemplated by this Sublease, 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.
Acceptance of any late charge shall not constitute a waiver of Subtenant's default with respect to the overdue amount nor prevent Sublessor from exercising any of the other rights and remedies of the Sublessor under this Sublease.
In addition, all amounts not paid to Sublessor when and as same become due hereunder shall bear interest from the date due until paid at the rate of one and one-half percent (1.5%) per month until paid.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 FDD, Bens Soft Pretzels outlines specific terms regarding late payments from the subtenant. If a subtenant fails to pay any amount due, they are responsible for all late charges, interest, and penalties as dictated by the lease.
Specifically, if payment is not received within five days of the due date, or within five days of receiving written notice from Bens Soft Pretzels if no due date is specified in the sublease, the subtenant will incur a late charge. This late charge is equivalent to six percent (6%) of the overdue amount. Bens Soft Pretzels specifies that this late charge is a reasonable estimate of the costs they will incur due to the late payment.
Furthermore, all overdue amounts will accrue interest from the original due date until paid in full. The interest rate is set at one and one-half percent (1.5%) per month. It is important to note that accepting a late charge does not waive Bens Soft Pretzels' right to address the default concerning the overdue amount, nor does it prevent them from pursuing other remedies available under the sublease.