What division in Maryland handles franchise oversight for Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
dding the following:
Based on the financial condition of franchisor's guarantor, AB Assetco LLC, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisee shall be deferred until the franchisor completes its preopening obligations under the Franchise Agreement.
- Releases. Section 15.2.4 and Section 19.1.7 are each amended to add the following:
This release will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- Entire Agreement. Section 22.12 is amended by adding the following:
Notwithstanding anything to the contrary in this Agreement, you are not required to waive any of your rights under the Maryland Franchise Registration and Disclosure Law with regard to our prior representations.
- Governing Law. Section 23.1 is amended by adding the following sentence:
Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall govern any claim arising under that law.
- Time Limit on Filing. Section 23.5 is amended by adding the following:
The foregoing limitation on the period of time within which arbitration and/or litigation claims must be brought shall not act to reduce the 3-year statute of limitations afforded a franchisee for bringing a claim arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
- Venue. Section 23.6 is amended by adding the following sentence:
Any choice of forum for litigation is subject to your right to bring an action under the Maryland Franchise Registration and Disclosure Law in Maryland.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
This Addendum will have effect only if the Franchise Agreement and/or the relationship between Franchisor and you satisfy all of the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law, without considering this Addendum. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.
BENJAMIN FRANKLIN FRANCHISING SPE LLC FRANCHISEE (Print name of company):
INFORMATION REQUIRED BY THE STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
- (a) A prohibition on the right of a franchisee to join an association of franchisees.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, the Maryland Franchise Registration and Disclosure Law governs any claim arising under that law for Benjamin Franklin Plumbing franchises. The FDD states that any choice of forum for litigation is subject to the franchisee's right to bring an action under the Maryland Franchise Registration and Disclosure Law in Maryland.
Furthermore, the FDD indicates that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. The franchise agreement requires franchisees to sign a general release as a condition of renewal or transfer of the franchise, modification of the territory, or licensing an additional territory; however, this release will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
In practical terms, this means that if a Benjamin Franklin Plumbing franchisee in Maryland has a dispute covered by the Maryland Franchise Registration and Disclosure Law, they have the right to pursue legal action in Maryland within the specified timeframe, regardless of any conflicting terms in the franchise agreement. The Maryland Securities Commissioner has required a financial assurance based on the financial condition of AB Assetco LLC, the guarantor. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.