factual

Does the Benjamin Franklin Plumbing franchise agreement require a renewal provision?

Benjamin_Franklin_Plumbing Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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

What This Means (2025 FDD)

According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the franchise agreement does not guarantee a right to renew. Instead, Section 3 of the agreement is replaced by a clause stating that a franchisee will not have a contractual right to renew the franchise when the term expires. However, Benjamin Franklin Plumbing may, at its sole discretion, offer the franchisee an opportunity to enter into a new franchise agreement.

This means that while a franchisee may hope to renew their agreement at the end of the term, Benjamin Franklin Plumbing is under no obligation to offer a renewal. The decision to offer a new agreement is entirely up to the franchisor. This lack of a guaranteed renewal could create uncertainty for franchisees as they approach the end of their franchise term. They may need to consider this factor when making long-term business plans and investments.

In the event of a renewal, franchisees are required to sign a general release as a condition of renewal. This release, however, will not apply to any liability under the Maryland Franchise Registration and Disclosure Law for franchisees in Maryland. Furthermore, franchisees may be required to pay a renewal fee, the amount of which is described in the Prior Agreement.

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.