What actions can Benjamin Franklin Plumbing take if the franchise agreement is terminated?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
To this end, each customer agreement must include a clause providing us the unconditional right (but not an obligation) to assume (directly or through a designee) the customer agreement upon the termination or expiration of this Agreement, including all of your rights and obligations thereunder that arise from and after such assumption.
Upon the expiration or termination of this Agreement, you agree to facilitate our conversations with customers to ensure an orderly transition of the business operations.
You agree to pay over to us (or our designee) any amounts (or a pro rata portion of any amounts) paid to you by your customers for services that you have not yet performed.
- 17.1.4 We can exercise any or all of our options under Sections 17.1.1, 17.1.2 and 17.1.3: (a) within thirty (30) days after the expiration of the Agreement Term, in the case of expiration of this Agreement; and (b) in the case of termination of this Agreement, at any time between the date of delivery of written notice of termination and thirty (30) days after the effective date of termination (or after the arbitration or court ruling upholding the termination, if termination is contested).
We may assign these options to another person or entity.
To preserve the value of these options, we may issue to you, and you are required to comply with, written instructions to refrain from, delay, or reverse any of the actions required of you under Section 17.2.
- 17.2. De-identification.
Unless we have instructed you otherwise under Section 17.1, upon termination or expiration of this Agreement under any circumstances, you are required to:
- 17.2.1 Cease to operate the Franchised Business, withdraw all advertising that can be canceled, remove from the Approved Location and from service vehicles all signs, graphics, and other items that display the Marks, and make any other changes that we request to dissociate yourself, the Approved Location, and the former Franchised Business from the System;
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, several actions can be taken by the company upon termination or expiration of the franchise agreement. Benjamin Franklin Plumbing has the unconditional right to assume the customer agreement upon termination or expiration of the agreement. This includes all rights and obligations from and after such assumption.
Upon termination or expiration, the franchisee must facilitate conversations with customers to ensure an orderly transition of business operations. The franchisee is also obligated to pay Benjamin Franklin Plumbing any amounts received from customers for services not yet performed, or a pro rata portion of those amounts. Benjamin Franklin Plumbing can exercise these options within thirty days after the agreement's expiration, or between the date of delivering a written termination notice and thirty days after the termination date.
Additionally, unless otherwise instructed by Benjamin Franklin Plumbing, the franchisee must cease operating the franchised business, withdraw advertising, remove signs and graphics displaying the brand's marks from the location and service vehicles, and make changes to dissociate themselves from the Benjamin Franklin Plumbing system. The company can also issue written instructions to the franchisee to refrain from, delay, or reverse any required actions to preserve the value of their options.