What are the consequences if a Benjamin Franklin Plumbing franchisee embezzles funds?
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;
Once Franchisee or any Owner has been arrested for or formally charged with a serious criminal offense, we will have the right: (i) to require that the individual(s) charged be removed from any active role in the Franchised Business pending final disposition of the charges; and (ii) if the person(s) charged include the Key Person, to take over operation of the Franchised Business and to manage it on your behalf pending final disposition of the charges.
If we exercise the right in clause (ii), we may charge a reasonable management fee for our services;
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, if a Benjamin Franklin Plumbing franchisee knowingly permits any agent or employee to embezzle funds or property from customers, the franchisor, or the franchisee, it constitutes a violation of the franchise agreement.
In the event of such an occurrence, Benjamin Franklin Plumbing has the right to demand that the individual(s) charged be removed from any active role within the franchised business pending the final resolution of the charges. Furthermore, if the person charged includes the Key Person, Benjamin Franklin Plumbing has the right to take over the operations of the franchised business and manage it on the franchisee's behalf until the charges are resolved. If Benjamin Franklin Plumbing exercises this right, they may charge a reasonable management fee for their services.
Additionally, if a Benjamin Franklin Plumbing franchisee or any owner commits or is convicted of, pleads guilty to, or pleads no contest to a felony, a crime involving moral turpitude, or any other crime or offense that the franchisor believes is likely to have an adverse effect on the System, the Marks, or the goodwill associated with them, it constitutes a violation of the franchise agreement. These actions can lead to further penalties or termination of the franchise agreement.