When is the Supplemental Rent due for Bimbo Foods Bakeries Distribution under the lease agreement?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
c Rent payments or expenses chargeable to Lessee under this Lease are paid in full. Lessee shall pay all amounts other than Basic Rent Lessee is obligated to pay hereunder (the "Supplemental Rent" and together with Basic Rent, the "Rent") when due or if no date is specified herein, on demand. If any Rent payment is not made within five (5) days after its due date, Lessee shall pay a late charge equal to the lesser of 10% of the late rental payment amount, and the maximum amount permitted by law. Lessor may charge Lessee a return check or non-sufficient funds charge of $50.00 (not to exceed the maximum amount permitted by law) for any payment which is returned by the bank for any reason. LESSEE'S PAYMENT OF RENT AND LESSEE'S PERFORMANCE OF ALL OTHER OBLIGATIONS ARE ABSOLUTE AND UNCONDITIONAL AND WITHOUT SET OFF, COUNTERCLAIM, OR ANY DEFENSE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, ANY RIGHT OR CLAIM THAT LESSEE MAY NOW OR HEREAFTER HAVE AGAINST LESSOR, ANY OF LESSOR'S AFFILIATES, ANY ASSIGNEE OF LESSOR, OR THE MANUFACTURER OF THE VEHICLES FOR ANY REASON WHATSOEVER, SPECIFICALLY INCLUDING, WITHOUT LIMITATION, ANY CLAIMS THAT LESSEE MAY HAVE AGAINST LESSOR'S AFFILIATES, OR ANY ASSIGNEE OF LESSOR W
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the Supplemental Rent, which includes all amounts other than the Basic Rent, is due either when a date is specified in the lease agreement or, if no date is specified, then upon demand by the Lessor. The FDD also specifies that if any rent payment, including Supplemental Rent, is not made within five days of its due date, a late charge will be applied. This late charge is the lesser of 10% of the late rental payment amount or the maximum amount permitted by law. Additionally, Bimbo Foods Bakeries Distribution may charge a $50 fee for any payment returned by the bank due to insufficient funds, not exceeding the maximum amount permitted by law.
This means that as a prospective Bimbo Foods Bakeries Distribution franchisee, it is crucial to carefully review the lease agreement to understand when Supplemental Rent payments are due to avoid late fees or potential penalties. Franchisees should budget accordingly to ensure timely payments, as the agreement emphasizes that all payment obligations are absolute and unconditional, without any right to set off, counterclaim, or defense.
Understanding the terms related to rent payments is essential for managing the financial obligations associated with the Bimbo Foods Bakeries Distribution franchise. Franchisees should seek clarification from the franchisor regarding any ambiguities in the lease agreement to ensure compliance and avoid financial repercussions.