Under what circumstances would the waiver of subrogation in the Bens Soft Pretzels sublease be void?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.10 Waiver of Subrogation. Notwithstanding anything in this Sublease to the contrary, Subtenant hereby waives any and all rights of recovery, claims, actions or causes of action against Sublessor and its officers, directors, managers, members, shareholders or partners, as the case may be, and the respective agents, employees, successors and assigns of each of them, for any loss or damage that may occur to the Premises or the building within which same are located or any improvements thereto or any personal property located therein by reason of fire, the elements, or any other cause insured against under valid and collectible fire and extended coverage of insurance policies under or related to the Lease and/or this Sublease, regardless of cause of origin, including negligence, except in any case which would render this waiver void under law, to the extent that such loss or damage is recoverable under said insurance policies.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the subtenant (franchisee) waives rights to recovery for losses to the premises or building against the sublessor (Bens Soft Pretzels) that are covered by insurance policies related to the lease, regardless of the cause, including negligence. However, this waiver is void under any circumstance that would render the waiver void under the law.
In practical terms, this means a Bens Soft Pretzels franchisee generally cannot sue Bens Soft Pretzels for damages to the store location if those damages are covered by insurance. This waiver applies to losses caused by fire, the elements, or any other insured event. The exception is if a law exists that prohibits such waivers, in which case the waiver would be void and the franchisee could potentially pursue legal action.
This type of waiver is common in commercial leases to allocate risk and avoid duplicate insurance coverage. Franchisees should consult with a legal professional to understand the specific implications of this waiver in their jurisdiction and ensure they have adequate insurance coverage to protect their business.