Under what circumstances does a Bens Soft Pretzels franchisee have to reimburse insurance premiums and other expenses?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (6) If you do not maintain insurance on the Store as we require, we may, at our option and in addition to our other rights and remedies, obtain the insurance and keep the same in full force and effect on your behalf, and you shall reimburse us for all premiums and other expenses incurred by us in connection with obtaining such insurance.
- (7) Currently, the week ends on Sunday, and the Royalty Fee and Advertising Fund fee are due on Monday the following week, through electronic funds transfer.
ITEM 7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT (for a Traditional or Captive Venue Store)
| Type of Expenditure* | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $30,000 | Lump sum. | Due upon signing the Franchise Agreement. | Us. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, a franchisee may have to reimburse the franchisor for insurance premiums and other expenses under specific circumstances. If a franchisee fails to maintain the required insurance coverage for their store, Bens Soft Pretzels has the option to obtain insurance on the franchisee's behalf. In this situation, the franchisee is responsible for reimbursing Bens Soft Pretzels for all premiums and other expenses incurred in obtaining that insurance. This is in addition to any other rights and remedies Bens Soft Pretzels may have.
This requirement ensures that all Bens Soft Pretzels locations maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. It also allows Bens Soft Pretzels to enforce its insurance standards consistently across all franchise locations.
Beyond insurance, franchisees may also incur expenses for telephone services maintained by Bens Soft Pretzels. If Bens Soft Pretzels maintains a telephone number for the store, the franchisee is required to use that number and must reimburse Bens Soft Pretzels for the monthly cost of the telephone service within five days of receiving the bill. Failure to reimburse Bens Soft Pretzels for telephone costs may result in the termination or transfer of the telephone number.