For Benjamin Franklin Plumbing, what do contract liabilities typically relate to?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
n any action arising out of or relating to this Note or any Default under this Note.**
IN WITNESS WHEREOF, Maker has executed this Note as of the date below.
| MAKER: | ||
|---|---|---|
| Print Name: | ||
| Date: |
AMORTIZATION SCHEDULE TO PROMISSORY NOTE
[insert amortization schedule]
GUARANTEE
In consideration of the willingness of Benjamin Franklin Franchising SPE LLC ("Holder") to permit ("Maker") to pay a portion of the Franchise Fee owed to Holder in connection with a BENJAMIN FRANKLIN PLUMBING Franchise Agreement and pursuant to the foregoing Promissory Note ("Note"), the undersigned ("Guarantors"), hereby personally and unconditionally: (1) guarantee to Holder and its successors and assigns that Maker shall punctually pay and perform each and every undertaking set forth in the Note; and (2) agree personally to be liable for Maker's Default under the Note.
Each Guarantor waives: (a) acceptance and notice of acceptance by Holder of the foregoing undertakings; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any right he or she may have to require that an action be brought against Maker or any other person as a condition of liability; (e) all rights to payments and claims for reimbursement or subrogation which any Guarantor may have against Maker arising as a result of the execution of and performance under this Guarantee by any Guarantor; (f) any law or statute which requires that Holder make demand upon, assert claims against or collect from Maker or any others, foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Maker or any others prior to making any demand upon, collecting from or taking any action against Guarantors with respect to this Guarantee; (g) any and all other notices and legal or equitable defenses to which he or she may be entitled; and (h) any and all right to have any legal action under this Guarantee decided by a jury.
Each Guarantor consents and agrees that: (i) his or her direct and immediate liability under this Guarantee shall be joint and several; (ii) he or she shall render any payment or performance required under the Note upon demand if Maker fails or refuses punctually to do so; (iii) such liability shall not be contingent or conditioned upon pursuit by Holder of any remedies against Maker or any other person;
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing's contract liabilities often relate to the payment of the franchise fee. Specifically, the "Guarantee" sections within Item 22 discuss situations where a guarantor ensures the franchisee (referred to as "Maker") fulfills their obligations, particularly the payment of the franchise fee as outlined in the Promissory Note. This guarantee extends to the punctual payment and performance of all undertakings specified in the Note.
Furthermore, the security agreement detailed in Item 22 indicates that the franchisee's assets may be used as collateral to secure their obligations under the Franchise Agreement and the Promissory Note. This collateral can include personal property used in the Benjamin Franklin Plumbing franchised business, as well as replacements, rents, profits, and proceeds from the sale of these assets.
In practical terms, this means that a Benjamin Franklin Plumbing franchisee's failure to pay the franchise fee or meet other financial obligations could result in the guarantor being held liable. Additionally, the franchisor, Benjamin Franklin Franchising SPE LLC, has the right to claim the franchisee's business assets to cover the outstanding debt. Prospective franchisees should carefully review the terms of the Franchise Agreement, Promissory Note, and Security Agreement to fully understand their financial obligations and the potential consequences of default.