What must the Benjamin Franklin Plumbing franchisee and franchisor acknowledge in the Renewal Addendum?
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. |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, both the franchisee and franchisor must acknowledge several key aspects within the Renewal Addendum. The addendum explicitly states that pre-opening obligations outlined in the original franchise agreement are no longer applicable, as the franchisee has already been operating the business. However, the franchisee must still meet the renewal conditions specified in the prior agreement. The franchisee is obligated to pay a renewal fee, the amount of which is detailed in the prior agreement, upon execution of the addendum.
Furthermore, the indemnification obligations from the previous agreement remain in effect even after its expiration. The addendum also clarifies that the term and renewal options of the franchise agreement are modified, indicating that there is no contractual right to renew the franchise, but Benjamin Franklin Plumbing may offer a new agreement at its discretion. The parties also acknowledge that the individual(s) identified as "Guarantor" are guaranteeing Franchisee's obligations under the Franchise Agreement.
In addition to these acknowledgements, franchisees in certain states like Maryland must be aware that the Franchise Agreement requires them to sign a general release as a condition of renewal. However, this release does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Franchisees in states like North Dakota and Rhode Island should note that the addendum's provisions are effective only if they meet the jurisdictional requirements of their respective state franchise laws. This ensures that state-specific protections and regulations are upheld during the renewal process.
Finally, prospective franchisees in states other than CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA and WI must complete a questionnaire to confirm their understanding of the franchise terms and that no unauthorized statements or promises have been made. This questionnaire specifically asks about the receipt of the Franchise Disclosure Document (FDD) with an Issuance Date of April 3, 2025, and any inconsistent information received regarding investment, financial performance, or other details that might influence their decision to sign the Franchise Agreement.