Does Benjamin Franklin Plumbing assume liability for the actions of its franchisees?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to clearly inform all workers, before hiring and periodically thereafter, that Franchisee, and not Franchisor, is their employer and that Franchisor does not assume and will not accept any employer, co-employer, or joint employer obligations.
You agree to indemnify us for any liability, cost, expense, loss or damage, including attorney's fees and costs, arising from (i) any claim or allegation that Franchisor or any affiliate is the employer, co-employer, or joint employer of Franchisee, its Owners, or any workers in the Franchised Business, and (ii) your use of the Hotline or reliance on any information received during your use of the Hotline.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, Benjamin Franklin Plumbing does not assume liability for the actions of its franchisees. The agreement stipulates that franchisees must inform their workers that they, the franchisee, are the employer, not Benjamin Franklin Plumbing.
Furthermore, the franchisee agrees to indemnify Benjamin Franklin Plumbing for any costs, losses, or damages, including attorney's fees, arising from any claim or allegation that Benjamin Franklin Plumbing is the employer, co-employer, or joint employer of the franchisee, its owners, or any workers in the franchised business. This includes any reliance on information received from the Hotline.
This arrangement is typical in franchising, where franchisees are independent business owners. Franchisees bear the responsibility for their employees and business operations, and they protect the franchisor from potential liabilities through indemnification agreements.