What are the conditions that would disqualify a Benjamin Franklin Plumbing franchisee from renewing their franchise agreement?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
19. RENEWAL
- 19.1. Renewal Term and Conditions.
Upon expiration of this Agreement, you will have the option to continue the franchise relationship for one (1) additional term of ten (10) years, subject to this Section.
We will require you to satisfy the following requirements as a condition of renewing the franchise relationship with us:
19.1.1 You are required to give us written notice of your desire to renew not less than six (6) months and not more than twelve (12) months before the Expiration Date;
19.1.2 You must not be in default of this Agreement or any other agreement with us, our affiliates, or our approved vendors at the time you give the notice in Section 19.1 or during the remainder of the expiring term;
19.1.3 You are required to have a good record of customer service and of compliance with Brand Standards and your contractual obligations to us;
19.1.4 You are required to be on good terms with us, including but not limited to having a good working relationship for day-to-day operations and not being in litigation or other adversarial legal proceedings with us;
19.1.5 At our option, you will sign the then-current franchise agreement being offered to new franchisees of the Brand, except that we may or may not include a further renewal option (the "Successor Franchise Agreement").
The terms of the Successor Franchise Agreement may differ substantially from the terms of this Agreement, including increased fees, new fees, reconfiguration of the Territory, and higher Minimum Performance Requirements.
Personal guarantees will be required per our then-current policy and our other standard documents will be required;
19.1.6 You are required to pay us the renewal fee specified in the Brand Appendix;
19.1.7 Franchisee and all Owners are required to sign a general release, in a form we prescribe, of any and all claims against us, our affiliates, and our officers, directors, shareholders and employees;
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, several conditions could prevent a franchisee from renewing their franchise agreement. To renew for an additional 10-year term, the franchisee must meet specific requirements.
First, the franchisee must provide written notice of their intent to renew within a specific timeframe: no less than six months and no more than twelve months before the expiration date of the current agreement. Second, the franchisee must not be in default of the existing agreement or any other agreements with Benjamin Franklin Plumbing, its affiliates, or approved vendors, both at the time of the renewal notice and throughout the remainder of the current term.
Additionally, the franchisee needs to maintain a good record of customer service and compliance with brand standards and contractual obligations. They must also be on good terms with Benjamin Franklin Plumbing, which includes maintaining a positive working relationship for day-to-day operations and avoiding litigation or adversarial legal proceedings. Benjamin Franklin Plumbing also has the option to require the franchisee to sign the then-current franchise agreement offered to new franchisees, which may include substantially different terms such as increased or new fees, reconfiguration of the territory, and higher minimum performance requirements. The franchisee will also be required to pay a renewal fee as specified in the Brand Appendix and sign a general release of claims against Benjamin Franklin Plumbing and its affiliates.
Failing to meet any of these conditions gives Benjamin Franklin Plumbing the right to deny the renewal of the franchise agreement. This emphasizes the importance of franchisees maintaining strong operational performance, positive relationships with the franchisor, and adherence to all contractual obligations to ensure their eligibility for renewal.