What standards are considered when evaluating a proposed Benjamin Franklin Plumbing transferee?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 option, sign our then-current standard form of Franchise Agreement (or the standard form most recently offered to new franchisees) and related documents. The new Franchise Agreement may include new or increased fees and may otherwise differ, without limitation, from the terms of this Agreement.
(c) Require all owners of a beneficial interest in the transferee to sign our then-current form of Personal Guarantee and our other then-current standard documents.
(d) Successfully complete our then-current training requirements.
(e) Make arrangements to modernize and upgrade the Franchised Business, at the transferee's expense, to comply with our then-current Brand Standards.
(f) If the proposed transferee is another franchisee of the Brand, the proposed transferee is required to not have any outstanding notice of default under any agreements with us, have a good record of customer service and compliance with Brand Standards, and sign a general release in a form acceptable to us.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, a proposed transferee must meet several qualifications to be approved. These qualifications include meeting the brand's current standards for new franchisees, which may encompass educational, managerial, and business standards. The transferee must not be involved with competing businesses and must demonstrate good moral character, business reputation, and credit rating, as well as the aptitude and ability to operate the franchised business.
Even if the proposed transferee is already a Benjamin Franklin Plumbing franchisee, approval is not guaranteed, and the franchisor retains the same discretion as with a new franchisee. The transferee may be required to sign the then-current standard form of the 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 the current Personal Guarantee and other standard documents.
Furthermore, the transferee must successfully complete the 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. If the transferee is an existing franchisee, they must not have any outstanding default notices, must have a good record of customer service and compliance with brand standards, and must sign a general release acceptable to Benjamin Franklin Plumbing.