Does the document mention any specific obligations of Benjamin Franklin Plumbing franchisees?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
nstrued in accordance with the laws of the State of Maryland. Sole and proper venue for any action shall be in the state and federal courts in Maryland.
- E. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto.
| By: |
|---|
DEBTOR:
Its:
EXHIBIT A TO SECURITY AGREEMENT
Premises: [Approved Location Address]
EXHIBIT C RENEWAL ADDENDUM
RENEWAL ADDENDUM TO THE BENJAMIN FRANKLIN PLUMBING FRANCHISE AGREEMENT
| THIS RENEWAL ADDENDUM ("Addendum") to the BENJAMIN FRANKLIN PLUMBING |
|---|
| Franchise Agreement dated as of |
| ("Franchise |
| Agreement") |
| by |
| and |
| between Benjamin Franklin |
| Franchising SPE LLC, |
| a Delaware |
| limited liability company |
| ("Franchisor"), |
| , a [state/entity type] ("Franchisee"), and |
| ([collectively,] "Guarantor"), is entered into simultaneously with the Franchise Agreement. |
| RECITALS |
| A. |
| Franchisor and Franchisee are parties to |
| one or more |
| BENJAMIN FRANKLIN |
| PLUMBING |
| franchise agreements |
| dated |
| ([collectively,] |
| "Prior |
| Agreement") |
| under |
| which Franchisor granted Franchisee the right to operate the Franchised Business at the Approved Location. |
| The term of the Prior Agreement has expired or will expire soon. |
| B. |
| Franchisor and Franchisee are executing the Franchise Agreement to renew the rights |
| granted to Franchisee under the Prior Agreement. |
| C. |
| The individual(s) identified above as "Guarantor" are guarantying |
| Franchisee's obligations |
| under the Franchise Agreement (the "Guaranty"). |
| D. |
| The parties desire to modify certain provisions of the Franchise Agreement as reflected in |
| this Addendum. |
| NOW THEREFORE, in consideration of the mutual covenants, agreements and obligations set |
| forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby |
| acknowledged, the parties, intending to be legally bound, agree as follows: |
| 1. |
| Pre-Opening Obligations Deleted. Since Franchisee has been operating the Franchised Business |
| pursuant to the Prior Agreement, the parties agree that no provisions of the Franchise Agreement that relate |
| to pre-opening obligations of either party shall be applicable. |
| Franchisee remains required to comply with |
| the conditions for renewal under the Prior Agreement. |
| 2. |
| Term. The text of Section 3 of the Franchise Agreement is deleted and replaced with the following: |
| "This Agreement will expire on the anniversary of the Agreement Date specified |
| in the Brand Appendix (the "Expiration Date"). You will not have a contractual |
| right to renew the franchise rights when the term expires. However, we may in our |
| sole discretion offer you the opportunity to enter into a new |
| franchise |
| agreement |
| with us. |
| 3. |
| Renewal Fee. |
| Simultaneously with the execution of this Addendum, Franchisee shall pay |
| Franchisor a renewal fee in the amount of, as described in the Prior Agreement. |
| 4. |
| Indemnification. |
| The indemnification obligations under the Prior Agreement survive the |
| expiration of the Prior Agreement. |
- Release by Franchisee and Guarantor.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing franchisees have several obligations outlined within various agreements. Specifically, if a franchisee is renewing their agreement, they must comply with the conditions for renewal under the prior agreement. Additionally, franchisees are obligated to pay a renewal fee, the amount of which is described in the Prior Agreement, upon execution of the Renewal Addendum.
Furthermore, if a Benjamin Franklin Plumbing franchisee owes a Franchise Fee and enters into a Promissory Note to pay it over time, they are obligated to make timely and complete payments as per the note, the Franchise Agreement, and any other debts owed to the Secured Party. They must also perform all covenants, obligations, and agreements detailed in these documents. To secure these obligations, the franchisee grants the franchisor a continuing security interest in all personal property related to the franchised business, including equipment, accounts, and inventory.
In addition to financial obligations, Benjamin Franklin Plumbing franchisees must properly maintain and repair the collateral (secured property). They also warrant that they own the collateral free of other liens, except for the one created by the security agreement. These obligations ensure that the franchisor has recourse in case of franchisee default and that the franchisee maintains the assets necessary for operating the business.
Guarantors also have obligations. They must guarantee that the Maker (franchisee) punctually pays and performs every undertaking in the Note. The Guarantors also agree to be personally liable for the Maker's default under the Note. These obligations are in place to ensure the financial stability and operational integrity of the Benjamin Franklin Plumbing franchise.