What constitutes a lease for Benjamin Franklin Plumbing, according to the FDD?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
All of the personal property of Debtor now and hereafter situated at, used in connection with, relating to or deriving from any BENJAMIN FRANKLIN PLUMBING Franchised Business (or its successor) pursuant to the Franchise Agreement or otherwise, including without limitation, at those certain premises which are described on Exhibit A, attached hereto and incorporated herein by this reference ("Premises"), and the businesses conducted at such Premises, including, without limitation, all present and after-acquired goods, accounts, documents, instruments, money, deposit accounts, chattel paper, inventory, equipment, supporting obligations, investment property, letter of credit rights, and general intangibles; and
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Benjamin Franklin Plumbing does not explicitly define what constitutes a lease. However, Exhibit A to the Security Agreement refers to "Premises" as the location described on Exhibit A, where the franchisee's personal property is situated and used in connection with the Benjamin Franklin Plumbing franchised business. This suggests that the franchisee operates from a physical location, which could be leased or owned.
While the FDD does not provide a specific definition of a lease, it indicates that the franchisee will likely need to secure a location from which to operate the Benjamin Franklin Plumbing business. The security agreement uses the term "Premises" to describe this location. The franchisor takes a security interest in the franchisee's property at that location.
Prospective franchisees should seek clarification from Benjamin Franklin Plumbing regarding the requirements for the business location. Specifically, they should inquire whether leasing is required or if owning the premises is an option, and what criteria the location must meet. Understanding these requirements is crucial for budgeting and planning the launch of their Benjamin Franklin Plumbing franchise.