What specific costs related to bankruptcy must a Bens Soft Pretzels franchisee or assignee cover?

Based on the 2025 Bens Soft Pretzels Franchise Disclosure Document, Item 22 discusses contracts related to the franchise agreement, including assignment and assumption of the lease. If a Bens Soft Pretzels franchisee defaults on their lease, Bens Soft Pretzels as the franchisor, may take possession of the premises and cure any defaults specified by the landlord.

Specifically, the franchisee or their assignee is responsible for covering all amounts Bens Soft Pretzels pays to the landlord to correct the franchisee's defaults under the lease. This includes interest and reasonable collection costs incurred by Bens Soft Pretzels. This means that if a franchisee's failure to meet lease obligations leads to financial penalties or legal action, the franchisee is liable for those costs.

This provision protects Bens Soft Pretzels from financial losses resulting from a franchisee's failure to uphold their lease obligations. It also ensures that landlords are compensated for any defaults, maintaining the stability of the leased premises for continued operation of the Bens Soft Pretzels store. For a prospective franchisee, this highlights the importance of carefully reviewing and understanding the lease agreement, as well as maintaining a strong financial position to avoid defaults that could lead to these additional costs.