What is the legal entity to which payments are made for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the willingness of Benjamin Franklin Franchising SPE LLC ("Holder") to permit ("Maker") to pay a portion of the Franchise Fee owed to Holder in connection with a BENJAMIN FRANKLIN PLUMBING Franchise Agreement and pursuant to the foregoing Promissory Note ("Note"), the undersigned ("Guarantors"), hereby personally and unconditionally: (1) guarantee to Holder and its successors and assigns that Maker shall punctually pay and perform each and every undertaking set forth in the Note; and (2) agree personally to be liable for Maker's Default under the Note.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, payments for franchise fees and other obligations are made to Benjamin Franklin Franchising SPE LLC. This entity is identified as the "Holder" in the context of promissory notes and guarantees related to the franchise fee. Specifically, if a franchisee (referred to as "Maker") finances a portion of their franchise fee through a promissory note, they are indebted to Benjamin Franklin Franchising SPE LLC.
Furthermore, the "Guarantors" of the franchisee's obligations guarantee to Benjamin Franklin Franchising SPE LLC that the franchisee will fulfill all payment and performance obligations outlined in the promissory note. This arrangement ensures that Benjamin Franklin Franchising SPE LLC receives the franchise fee and other payments due under the franchise agreement. The franchisee acknowledges this payment structure in documents such as the Security Agreement, where Benjamin Franklin Franchising SPE LLC is named as the "Secured Party" to whom debts are owed.
Prospective franchisees should note that Benjamin Franklin Franchising SPE LLC is the specific legal entity they will be contracting with and making payments to throughout the duration of their franchise agreement. Understanding this relationship is crucial for managing financial obligations and ensuring compliance with the terms of the franchise agreement.