Can Benjamin Franklin Plumbing assign its right of first refusal to someone else?

According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, Benjamin Franklin Plumbing has the ability to assign its right of first refusal to another party. This means that if a franchisee intends to sell their Benjamin Franklin Plumbing franchise, they must first offer the franchise to Benjamin Franklin Plumbing. However, Benjamin Franklin Plumbing can then assign this right to purchase the franchise to someone else, either before or after they initially decide to exercise their right.

This clause gives Benjamin Franklin Plumbing flexibility in managing franchise transfers. They can either directly repurchase a franchise or allow a third party, such as another franchisee or an investor, to acquire it. This could be beneficial to Benjamin Franklin Plumbing as it allows them to strategically manage the growth and ownership of their franchise network.

For a prospective Benjamin Franklin Plumbing franchisee, this means that if they decide to sell their franchise, the potential buyer might not be Benjamin Franklin Plumbing itself, but another party designated by them. The terms of the sale would remain the same as initially offered by the third party, ensuring the franchisee receives the fair market value for their business. However, the closing on the purchase must occur within sixty (60) days after the date of Benjamin Franklin Plumbing's notice to the seller electing to purchase the interest.

It is important for franchisees to understand this right of first refusal and the possibility of its assignment, as it impacts the process and potential parties involved in the sale of their Benjamin Franklin Plumbing franchise. Franchisees should seek legal counsel to fully understand the implications of this clause in the franchise agreement.