Where should a Bens Soft Pretzels Sublicensee send their license fee payments?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Sublicensee agrees that as of the date of this Sublicense to assume, be subject to and to perform each and every condition and obligation to be performed by Sublicensor under the provisions of the License or to which Sublicensor is subject thereunder, except that all license fees and other amounts payable to Licensor under the License shall be paid to Sublicensor in accordance with Section 2.3 hereof.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, a Sublicensee's license fees and other payments should be remitted to the Sublicensor, not the Licensor. This is a notable exception to the standard obligations assumed by the Sublicensee under the License agreement.
This arrangement means that while the Sublicensee is generally bound by the terms of the original License agreement between the Licensor and Sublicensor, the financial transactions are directed to the Sublicensor. This could be due to various reasons, such as the Sublicensor managing the territory or providing additional support to the Sublicensee.
Prospective Sublicensees should verify with the Sublicensor the exact methods and schedules for these payments to ensure compliance and avoid any potential breaches of the Sublicense agreement. Understanding this payment flow is crucial for maintaining a good standing within the Bens Soft Pretzels franchise system.