What is the role of the 'Maker' in the context of the promissory note 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 Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the 'Maker' is the entity permitted by Benjamin Franklin Franchising SPE LLC ('Holder') to pay a portion of the franchise fee through a promissory note. In essence, the Maker is the franchisee who is financing a part of their franchise fee.
This arrangement necessitates a guarantee, where 'Guarantors' unconditionally ensure that the Maker fulfills all obligations outlined in the promissory note. These guarantors agree to be personally liable if the Maker defaults on the note. The guarantor(s) waive certain rights, including requiring the Holder to first pursue action against the Maker before seeking recourse from the Guarantors.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the role of the Maker is crucial if they plan to finance their franchise fee. They should be aware of the implications of the promissory note and the necessity of a guarantor, who takes on significant financial responsibility. Franchisees should carefully review the terms of the promissory note and guarantee with a legal and financial advisor.