What constitutes a misrepresentation that could lead to termination of the Benjamin Franklin Plumbing agreement?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1.23 If you fail on three (3) or more separate occasions within any period of eighteen (18) months to provide access to and to submit when due reports or other data, information or supporting records, or
to pay when due any amounts due to us or otherwise comply with this Agreement, whether or not such failures to comply were corrected after written notice of such failure was delivered to you;
16.1.24 You misuse or make any unauthorized use of the Marks, engage in any conduct which we reasonably believe threatens to or actually impairs the Marks or our reputation or the goodwill associated therewith, and do not cure such misuse or unauthorized use within twenty-four (24) hours' notice from us; or
16.1.25 You commit violations of any health, safety, sanitation or other regulatory law, ordinance, standard, practice or regulation or operate the Franchised Business in a manner that presents a health or safety hazard to your employees, customers or the general public.
16.2. Termination for Non-Payment.
If you fail to pay any monies owed to us or our affiliates within fifteen (15) days after receipt of notice of default from us, this Agreement will terminate at the end of the 15-day period without further notice from us.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing can terminate the franchise agreement under specific conditions. One such condition, as detailed in section 16.1.23, involves failing to provide access to, or submit required reports, data, information, or supporting records when due. This also includes failing to pay amounts owed to the company or otherwise comply with the agreement. This can lead to termination, regardless of whether the failures were corrected after receiving written notice.
Another cause for termination, as outlined in section 16.1.24, is misusing or making unauthorized use of the Benjamin Franklin Plumbing marks. This includes engaging in conduct that could damage the marks, the company's reputation, or associated goodwill. If the franchisee does not correct the misuse or unauthorized use within 24 hours of receiving notice, the agreement can be terminated.
Section 16.1.25 states that violations of health, safety, sanitation, or other regulatory laws, ordinances, standards, practices, or regulations can also lead to termination. This includes operating the franchised business in a way that poses a health or safety hazard to employees, customers, or the general public. Additionally, section 16.2 allows for termination if any monies owed to Benjamin Franklin Plumbing or its affiliates are not paid within 15 days after receiving a notice of default.
These termination clauses highlight the importance of adhering to the brand standards, maintaining regulatory compliance, and fulfilling financial obligations to avoid potential termination of the Benjamin Franklin Plumbing franchise agreement. Prospective franchisees should carefully review these sections to understand their responsibilities and the potential consequences of non-compliance.