If UWIN transfers the Benjamin Franklin Plumbing agreement, is UWIN released from liability?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Transfer by UWIN. UWIN has the right, directly or indirectly, to sell, assign, transfer or otherwise dispose of this Agreement, or any or all of its rights and obligations under this Agreement, to any individual, firm, partnership, association, bank, lending institution, corporation, affiliate, limited liability company or other third party as UWIN may in its sole discretion deem appropriate. In the event of any such sale, assignment, transfer, or other disposition, UWIN will be released from any liability under this Agreement for the obligations transferred.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, UWIN has the right to transfer the agreement to a third party. If UWIN sells, assigns, or transfers the agreement, it will be released from any liability under the agreement for the obligations transferred. This means that if UWIN transfers its rights and obligations to another entity, UWIN will no longer be responsible for fulfilling those obligations.
For a prospective Benjamin Franklin Plumbing franchisee, this clause is important because it clarifies the conditions under which UWIN can transfer the agreement and be released from its responsibilities. It is a standard business practice to allow a company to transfer agreements, especially in cases of mergers, acquisitions, or other business restructuring.
However, franchisees should carefully consider the implications of such a transfer. The new entity taking over the agreement may have different priorities, resources, or management styles, which could affect the franchisee's business. It is advisable for franchisees to seek legal counsel to understand their rights and obligations in the event of a transfer.