What qualifications must a proposed transferee meet to become a Benjamin Franklin Plumbing franchisee?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
u or represent you with the transfer of your Franchised Business.
- 15.1.4 We have the right to communicate with and counsel Franchisee, the Owners, and the proposed transferee on any aspect of a proposed transfer. Unless otherwise agreed, we do not waive any claims against the transferring party if we approve the transfer. If we do not approve the transfer, you are required to continue to operate the Franchised Business in accordance with this Agreement.
- 15.2. Transfer of Business. The conditions set forth in this Section apply to a proposed transfer of this Agreement and/or substantially all of the assets of the Franchised Business, as well as to a proposed transfer, alone or together with other previous, simultaneous or proposed transfers, of any direct or indirect equity ownership interest in Franchisee that would result in a change of control of Franchisee or the Franchised Business ("Change of Control"). Unless waived by Franchisor, the conditions are:
- 15.2.1 Franchisee and the Owners are required to be in compliance with all obligations to us under this Agreement and any other agreement with us and our affiliates as of the date of the request for our approval of the transfer, or make arrangements satisfactory to us to come into compliance by the date of the transfer.
15.2.2 The proposed transferee is required to:
- (a) Demonstrate to our satisfaction that the proposed transferee and its owners and managers meet all of our then-current qualifications to become a franchisee of the Brand, which may include educational, managerial, and business standards; absence of involvement with Competing Businesses; good moral character, business reputation, and credit rating; and aptitude and ability to operate the Franchised Business. If the proposed transferee is already a franchisee of the Brand, that fact does not guarantee approval to become the operator of the Franchised Business. We have no less discretion with respect to a proposed transferee than we have with granting a new franchise.
- (b) At our optio
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, a proposed transferee must meet several qualifications to become a franchisee. These qualifications include demonstrating that the transferee, along with their owners and managers, meet Benjamin Franklin Plumbing's then-current standards for new franchisees. These standards may encompass educational, managerial, and business qualifications. The transferee must not be involved with competing businesses and must possess good moral character, business reputation, and credit rating, as well as the aptitude and ability to operate the franchised business. It is important to note that if the proposed transferee is already a Benjamin Franklin Plumbing franchisee, this does not guarantee approval. Benjamin Franklin Plumbing retains the same discretion in approving a transferee as it does when granting a new franchise.
Additionally, at Benjamin Franklin Plumbing's option, the proposed transferee may be required to sign the then-current standard form of Franchise Agreement, which could include new or increased fees and terms that differ from the original agreement. All owners with a beneficial interest in the transferee must sign Benjamin Franklin Plumbing's current Personal Guarantee and other standard documents. The transferee must also successfully complete Benjamin Franklin Plumbing's then-current training requirements and make arrangements to modernize and upgrade the franchised business to comply with the brand's current standards, all at the transferee's expense.
Furthermore, if the proposed transferee is an existing Benjamin Franklin Plumbing franchisee, they must not have any outstanding notices of default under any agreements with Benjamin Franklin Plumbing, maintain a good record of customer service and compliance with brand standards, and sign a general release in a form acceptable to Benjamin Franklin Plumbing. The franchisee is also required to pay a transfer fee of $10,000. If a third-party broker refers the transferee, an additional fee equal to the amount owed under the referral arrangement must be paid as a condition of approval. These conditions ensure that any new franchisee or owner maintains the standards and financial obligations set by Benjamin Franklin Plumbing.