Under what condition can a Benjamin Franklin Plumbing franchisee renew their franchise rights?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
l or entity that owns a direct or indirect equity interest of 5% or greater in Franchisee is required to guarantee Franchisee's performance of this Agreement by executing the Personal Guarantee attached to this Agreement.
- 18.2. Governing Documents. At our request, you are required to furnish us with copies of Franchisee's articles of incorporation, bylaws, partnership agreement, certificate of formation, limited liability company operating agreement, stock certificates, corporate minutes, or other governing documents, as applicable. You are required to give us at least thirty (30) days prior written notice of any proposed amendments to your governing documents. Your governing documents must provide at all times that your activities are confined exclusively to developing and operating Franchised Businesses. If any controlling Owner is a business entity, you are required to provide similar information concerning that business entity as we may request.
- 18.3. Control Arrangements. Any voting trust, management agreement, or other arrangement affecting the power to direct and control the affairs of Franchisee requires our prior written consent. You are required to furnish any information and documentation that we may request concerning a proposed control arrangement.
- 18.4. No Use of Marks in Corporate or Legal Name. Without limiting any of the requirements in Section 11.3 above, you may not use any of the Marks as part of your corporate or legal name.
19. RENEWAL
- 19.1. Renewal Term and Conditions. Upon expiration of this Agreement, you will have the option to continue the franchise relationship for one (1) additional term of ten (10) years, subject to this Section. We will require you to satisfy the following requirements as a condition of renewing the franchise relationship with us:
- 19.1.1 You are required to give us written notice of your desire to renew not less than six (6) months and not more than twelve (12) months before the Expiration Date;
- 19.1.2 You must not be in default of this Agreement or any other agreement with us, our affiliates, or our approved vendors at the time you give the notice in Section 19.1 or during the remainder of the expiring term;
- 19.1.3 You are required to have a good record of customer service and of compliance with Brand Standards and your contractual obligations to us;
- 19.1.4 You are required to be on good terms with us, including but not limited to having a good working relationship for day-to-day operations and not being in litigation or other adversarial legal proceedings with us;
- 19.1.5 At our option, you will sign the then-current franchise agreement being offered to new franchisees of the Brand, except that we may or may not include a further renewal option (the "Successor Franchise Agreement").
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for one additional term of ten years, provided they meet specific conditions outlined in Section 19 of the agreement. To initiate the renewal process, the franchisee must provide written notice of their intent to renew to Benjamin Franklin Plumbing no less than six months and no more than twelve months before the expiration date of the current agreement.
Several conditions must be met to qualify for renewal. The franchisee must not be in default of the existing agreement or any other agreements with Benjamin Franklin Plumbing, its affiliates, or approved vendors, both at the time of giving notice and throughout the remainder of the current term. A good record of customer service, compliance with brand standards, and adherence to contractual obligations is also essential. Furthermore, the franchisee must maintain a positive working relationship with Benjamin Franklin Plumbing, avoiding litigation or adversarial legal proceedings.
As part of the renewal, Benjamin Franklin Plumbing has the option to require the franchisee to sign the then-current franchise agreement offered to new franchisees, which may include substantially different terms such as increased or new fees, territory reconfiguration, and higher minimum performance requirements. Personal guarantees and other standard documents will also be required. The franchisee must pay the renewal fee specified in the Brand Appendix and sign a general release of claims against Benjamin Franklin Plumbing and its affiliates. Additionally, the franchisee must upgrade their computer system and vehicles to meet the brand's current standards. Failure to provide timely notice of intent to renew or to sign and return the successor franchise agreement within thirty days of delivery may result in the franchisee being deemed to have declined the renewal option.