To whom does the Maker unconditionally promise to pay the Principal Amount 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, the Maker unconditionally promises to pay the principal amount to Benjamin Franklin Franchising SPE LLC, referred to as the "Holder." This obligation arises when Benjamin Franklin Franchising SPE LLC permits the Maker to finance a portion of the franchise fee through a Promissory Note.
This arrangement means that if a prospective Benjamin Franklin Plumbing franchisee chooses to finance part of their franchise fee, they are legally bound to repay that amount to Benjamin Franklin Franchising SPE LLC. The "Guarantors" also guarantee that the Maker will fulfill this payment obligation. This guarantee ensures that if the Maker defaults, the Holder can seek payment from the Guarantors.
The agreement includes waivers from the Guarantor, such as waiving the right to require the Holder to first pursue action against the Maker before seeking payment from the Guarantor. This is a standard practice in franchising to protect the franchisor's financial interests and ensure the franchise fee is paid. The franchisee should fully understand the implications of the Promissory Note and Guarantee, including the waiver provisions, before signing the agreement.