What section of the Benjamin Franklin Plumbing Franchise Agreement is deleted and replaced by the Renewal Addendum?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- Term. The text of Section 3 of the Franchise Agreement is deleted and replaced with the following: "This Agreement will expire on the anniversary of the Agreement Date specified in the Brand Appendix (the "Expiration Date"). You will not have a contractual right to renew the franchise rights when the term expires. However, we may in our sole discretion offer you the opportunity to enter into a new franchise agreement with us.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the Renewal Addendum modifies specific sections of the existing Franchise Agreement upon renewal. Specifically, Section 3 of the Franchise Agreement, which pertains to the term of the agreement, is entirely replaced by the language in the addendum.
This means that the original terms regarding the agreement's expiration date and renewal options are superseded. The new language clarifies that franchisees do not have a contractual right to renew their franchise when the term expires. Instead, Benjamin Franklin Plumbing retains the sole discretion to offer a new franchise agreement.
For a prospective franchisee, this highlights the importance of understanding that renewal is not guaranteed. While the franchisee may have the option to renew, it is not a right. The terms of any new franchise agreement offered by Benjamin Franklin Plumbing at the time of renewal could also differ from the original agreement. Therefore, franchisees should maintain a good relationship with the franchisor and meet all requirements for potential renewal.