How must a Bens Soft Pretzels subtenant make rent payments to the Sublessor?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3 Subtenant's Assumption of Duties under the Lease. Subtenant agrees that as of the date of this Sublease to assume, be subject to and to perform each and every condition and obligation to be performed by Sublessor under the provisions of the Lease or to which Sublessor is subject thereunder, except that all rent and other amounts payable to Lessor under the Lease shall be paid to Sublessor in accordance with Section 2.3 hereof.
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.
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.
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's rent and other payments due under the lease must be paid to the Sublessor, as stated in Section 1.3 of the sublease agreement. The Sublessor will then deposit these amounts into their account using a preauthorized check or electronic funds transfer system.
If the Subtenant fails to make a payment on time, they will be responsible for covering any late charges, interest, and penalties as outlined in the original lease. Additionally, if any amount due from the Subtenant is not received within five days of the due date, or within five days of receiving written notice from the Sublessor if no due date is specified, the Subtenant must pay a late charge of six percent (6%) of the overdue amount. This late charge is considered a fair estimate of the costs incurred by the Sublessor due to the late payment.
Furthermore, all unpaid amounts will accrue interest at a rate of one and one-half percent (1.5%) per month from the date the payment was originally due until it is fully paid. It is important to note that accepting a late charge does not waive the Subtenant's default regarding the overdue amount, and the Sublessor retains the right to exercise any other remedies available under the sublease. This ensures that Bens Soft Pretzels can enforce the terms of the sublease and protect its financial interests.