What actions constitute common law fraud against Benjamin Franklin Plumbing or its customers?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1.11 If you perpetrate common law fraud against us or any customer or supplier of the Franchised Business or knowingly permit any agent or employee of Franchisee to embezzle any funds or property of any customers, Franchisor, Franchisee, or others;
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 FDD, a Benjamin Franklin Plumbing franchisee commits a violation if they perpetrate common law fraud against Benjamin Franklin Plumbing, its customers, or suppliers. This also applies if the franchisee knowingly permits any agent or employee to embezzle funds or property from customers, the franchisor, the franchisee, or others.
This means that franchisees must ensure ethical business practices and prevent fraudulent activities within their organization. Franchisees are responsible for the actions of their employees and agents, and must implement controls to prevent embezzlement or fraud.
The consequences of such actions can be severe, potentially leading to termination of the franchise agreement and legal repercussions. This provision underscores the importance of integrity and ethical conduct in operating a Benjamin Franklin Plumbing franchise.