factual

Does the document mention any required actions for Benjamin Franklin Plumbing franchisees?

Benjamin_Franklin_Plumbing Franchise · 2025 FDD

Answer from 2025 FDD Document

R FRANCHISED BUSINESS; (B)TRANSFER A FRANCHISED BUSINESS; (C) MODIFY THE TERRITORY OF A FRANCHISED BUSINESS; (D) LICENSE AN ADDITIONAL TERRITORY**

Note: Where required by state law, this Release will be modified so that it does not apply to your rights under the state law. Please see Exhibit K to the disclosure document.

THIS GENERAL RELEASE DOES NOT APPLY WITH RESPECT TO CLAIMS ARISING UNDER THE WASHINGTON FRANCHISE INVESTMENT PROTECTION ACT, RCW 19.100, AND THE RULES ADOPTED THEREUNDER.

GENERAL RELEASE

THIS GENERAL RELEASE is signed by: (i) Benjamin Franklin Franchising SPE LLC ("Franchisor"); (ii) the BENJAMIN FRANKLIN PLUMBING franchisee named at the end of the document ("Franchisee" or "you"); and (iii) Franchisee's owners (the "Owners") as an express condition of Franchisee and/or the Owners: (1) (a) renewing, (b) transferring, (c) or modifying the Territory of their BENJAMIN FRANKLIN PLUMBING franchise, or (2) licensing an additional BENJAMIN FRANKLIN PLUMBING Territory.

    1. Release.

Source: Item 22 — CONTRACTS (FDD pages 87–88)

What This Means (2025 FDD)

According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, franchisees may be required to complete certain actions when renewing, transferring, or modifying their franchise territory. Specifically, franchisees and their owners must sign a general release as an express condition of renewing, transferring, or modifying their Benjamin Franklin Plumbing franchise, or licensing an additional territory. This release may be modified where required by state law, and it does not apply to claims arising under the Washington Franchise Investment Protection Act.

Furthermore, if a Benjamin Franklin Plumbing franchisee is financing a portion of their franchise fee through a promissory note, the franchisee's guarantors must unconditionally guarantee that the franchisee will pay and perform every undertaking in the note. The guarantors also waive certain rights, including the right to require the franchisor to take action against the franchisee before pursuing the guarantors.

For franchisees renewing their agreement, the addendum states that they must comply with the conditions for renewal under the prior agreement. They must also pay a renewal fee as described in the prior agreement. These stipulations ensure that franchisees meet their financial obligations and adhere to the terms of their original franchise agreement when seeking to extend their franchise rights with Benjamin Franklin Plumbing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.