What is the definition of the 'Authorized Time Period' in the Benjamin Franklin Plumbing agreement?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if the Territory is one that has an existing customer base due to out-of-territory sales by one or more existing franchisees before the Agreement Date, we may be obligated by contract to allow the existing franchisee(s) to continue providing services to those customers in the Territory for a period of time of up to twenty-four months from the Agreement Date (the "Authorized Time Period").
We will provide you with data provided to us by the existing franchisee(s) within forty-five (45) days after the Agreement Date.
After the expiration of the Authorized Time Period, any remaining customers in this group will be transitioned to you;
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the 'Authorized Time Period' refers to a period of up to 24 months from the agreement date. This situation arises if the territory granted to a new franchisee already has an existing customer base due to sales made by other franchisees before the new agreement was signed.
In such cases, Benjamin Franklin Plumbing may be contractually obligated to allow the existing franchisees to continue serving those customers within the new franchisee's territory for this 'Authorized Time Period'. This means that for up to two years, the new franchisee may not have exclusive rights to all customers within their designated territory.
Benjamin Franklin Plumbing is required to provide the new franchisee with customer data obtained from the existing franchisees within 45 days of the agreement date. After the 'Authorized Time Period' expires, any remaining customers in this group will be transitioned to the new Benjamin Franklin Plumbing franchisee, granting them the full customer base within their territory.