What is the dependency between the agreement being in effect and the territorial protection offered by Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
While this Agreement is in effect, and provided that you are not in default beyond any applicable cure period, we will not operate a business under the Marks and the System in the Territory or authorize others to operate Franchised Businesses within the Territory, except as permitted under Section 2.2 above and Sections 2.4 and 2.5 below.
This does not prohibit us from advertising or soliciting in your Territory for the purpose of recruiting prospective employees or independent contractors, or providing services for Key Accounts, in accordance with Section 2.5 below.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the territorial protection granted to a franchisee is directly tied to the Franchise Agreement remaining in effect. Benjamin Franklin Plumbing will not operate a business under its trademarks and system within the franchisee's territory, nor will it authorize others to do so, as long as the Franchise Agreement is active.
However, this protection is conditional. The franchisee must not be in default of the agreement beyond any applicable cure period. If the franchisee fails to meet their obligations and does not rectify the situation within the allowed timeframe, Benjamin Franklin Plumbing is no longer obligated to provide territorial protection.
It's important to note that Benjamin Franklin Plumbing retains certain rights, even with territorial protection in place. The company can still advertise or solicit within the franchisee's territory for recruiting employees or independent contractors and provide services for Key Accounts. The franchisee also needs prior written consent from Benjamin Franklin Plumbing to perform services or sell products outside of their designated territory.