Does the Benjamin Franklin Plumbing Addendum modify the Franchise Agreement, and if so, how?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
nstrued in accordance with the laws of the State of Maryland. Sole and proper venue for any action shall be in the state and federal courts in Maryland.
- E. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto.
| By: |
|---|
DEBTOR:
Its:
EXHIBIT A TO SECURITY AGREEMENT
Premises: [Approved Location Address]
EXHIBIT C RENEWAL ADDENDUM
RENEWAL ADDENDUM TO THE BENJAMIN FRANKLIN PLUMBING FRANCHISE AGREEMENT
| THIS RENEWAL ADDENDUM ("Addendum") to the BENJAMIN FRANKLIN PLUMBING |
|---|
| Franchise Agreement dated as of |
| ("Franchise |
| Agreement") |
| by |
| and |
| between Benjamin Franklin |
| Franchising SPE LLC, |
| a Delaware |
| limited liability company |
| ("Franchisor"), |
| , a [state/entity type] ("Franchisee"), and |
| ([collectively,] "Guarantor"), is entered into simultaneously with the Franchise Agreement. |
| RECITALS |
| A. |
| Franchisor and Franchisee are parties to |
| one or more |
| BENJAMIN FRANKLIN |
| PLUMBING |
| franchise agreements |
| dated |
| ([collectively,] |
| "Prior |
| Agreement") |
| under |
| which Franchisor granted Franchisee the right to operate the Franchised Business at the Approved Location. |
| The term of the Prior Agreement has expired or will expire soon. |
| B. |
| Franchisor and Franchisee are executing the Franchise Agreement to renew the rights |
| granted to Franchisee under the Prior Agreement. |
| C. |
| The individual(s) identified above as "Guarantor" are guarantying |
| Franchisee's obligations |
| under the Franchise Agreement (the "Guaranty"). |
| D. |
| The parties desire to modify certain provisions of the Franchise Agreement as reflected in |
| this Addendum. |
| NOW THEREFORE, in consideration of the mutual covenants, agreements and obligations set |
| forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby |
| acknowledged, the parties, intending to be legally bound, agree as follows: |
| 1. |
| Pre-Opening Obligations Deleted. Since Franchisee has been operating the Franchised Business |
| pursuant to the Prior Agreement, the parties agree that no provisions of the Franchise Agreement that relate |
| to pre-opening obligations of either party shall be applicable. |
| Franchisee remains required to comply with |
| the conditions for renewal under the Prior Agreement. |
| 2. |
| Term. The text of Section 3 of the Franchise Agreement is deleted and replaced with the following: |
| "This Agreement will expire on the anniversary of the Agreement Date specified |
| in the Brand Appendix (the "Expiration Date"). You will not have a contractual |
| right to renew the franchise rights when the term expires. However, we may in our |
| sole discretion offer you the opportunity to enter into a new |
| franchise |
| agreement |
| with us. |
| 3. |
| Renewal Fee. |
| Simultaneously with the execution of this Addendum, Franchisee shall pay |
| Franchisor a renewal fee in the amount of, as described in the Prior Agreement. |
| 4. |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, an addendum is used to modify the franchise agreement, particularly when renewing an existing franchise. The addendum specifically addresses and changes certain provisions of the standard franchise agreement to reflect the existing franchisee's prior operation of the business.
For franchisees renewing their Benjamin Franklin Plumbing franchise, the addendum eliminates pre-opening obligations typically found in a new franchise agreement, acknowledging that the franchisee has already been operating the business. It also modifies the term of the agreement, clarifying that there is no contractual right to renew the franchise at the end of the term, but Benjamin Franklin Plumbing may offer a new franchise agreement at their discretion. The franchisee must also pay a renewal fee as described in the prior agreement.
Furthermore, the addendum ensures that indemnification obligations from the prior agreement remain in effect even after the prior agreement expires. Certain states, such as Rhode Island, North Dakota, Indiana, Maryland, and Illinois, have specific addenda that modify the franchise agreement to comply with their respective franchise laws. These modifications may address governing law, jurisdiction, waiver of claims, and other legal considerations, ensuring that the franchise agreement adheres to local regulations. The availability of negotiation may be influenced by state laws, as highlighted by the disclosure for New York.