How must a Bens Soft Pretzels subtenant make payments to the sublessor?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
The Sublessor will then deposit the amounts due into its account by the preauthorized check or electronic funds transfer system.
- 2.4 Interest and Penalties for Late Payment. 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 Bens Soft Pretzels FDD, a subtenant will make payments to the sublessor through preauthorized check or electronic funds transfer. If any amount is not paid when due, the subtenant will be subject to late charges, interest, and penalties as outlined in the lease.
Specifically, if payment is not received within five days of the due date, or within five days of written notice if no due date is specified, the subtenant will incur a late charge of 6% of the overdue amount. Additionally, all unpaid amounts accrue interest at a rate of 1.5% per month from the date the payment was originally due until it is paid in full.
This arrangement ensures that Bens Soft Pretzels, as the sublessor, is compensated for the costs associated with late payments, which may include processing, accounting, and other charges. However, the acceptance of a late charge does not waive the subtenant's default regarding the overdue amount, and Bens Soft Pretzels retains the right to pursue other remedies available under the sublease.