Does the Benjamin Franklin Plumbing franchise agreement define 'Cause'?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| h. "Cause" defined – non-curable defaults | Section 16.1 | Non-curable defaults include: failure to obtain an Approved Location or to open for business by deadline; failure to complete pre-opening training to our satisfaction; unauthorized closing; loss of premises or right to do business; refusing inspection or access to records; operating Competing Business (see q. below); unapproved transfer of ownership or business assets; knowing misuse or disclosure of our confidential information; maintaining false books, underreporting sales, engaging in fraud or embezzlement, or misappropriating employee funds; conviction of felony or certain other crimes; insolvency, receivership, or dissolution of your business entity or loss of business license; if Franchisee or any Owner appears on a list of "blocked" persons under any anti-terrorism or similar law; breach of essential provision; failure to maintain required insurance; failure to attempt to contact a complaining customer or to resolve customer complaint; Key Person, Owners of Franchisee, and/or your employees, as designated by us (collectively, "Designated Representatives") or a Franchisee Qualified Substitute's failure to attend our annual convention for three consecutive years; failure to conduct background checks; repeated defaults even if cured, unauthorized use of the Marks or engaging in conduct we reasonably believe threatens to impair the Marks or our reputation, and not curing within 24 hours after notice from us; violating health, safety, or sanitation law or operating the Franchised Business in a manner that presents a health or safety hazard to your employees, customers or the general public; four or more territory infringement violations even if Territory Infringement Fee is paid. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 69–74)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the franchise agreement does define "Cause" in Section 16.1. The FDD outlines specific non-curable defaults that constitute cause for termination. These defaults range from operational failures to legal and ethical breaches.
Specifically, non-curable defaults include failing to secure an approved location or open by the deadline, not completing pre-opening training satisfactorily, unauthorized store closure, losing premises or business rights, refusing inspections or record access, operating a competing business, unapproved ownership or asset transfers, misusing confidential information, maintaining false records, underreporting sales, engaging in fraud, embezzlement, or misappropriating employee funds. Conviction of a felony, insolvency, receivership, business dissolution, or loss of license also constitute non-curable defaults.
Further defaults include appearing on a blocked persons list under anti-terrorism laws, breaching essential provisions, failing to maintain required insurance, neglecting customer complaints, Designated Representatives' failure to attend annual conventions for three years, not conducting background checks, repeated defaults even if cured, unauthorized use of trademarks, violating health/safety laws, or committing multiple territory infringements, even if the infringement fee is paid. If any of these defaults occur, Benjamin Franklin Plumbing has grounds to terminate the franchise agreement.