For a Benjamin Franklin Plumbing franchise, what is the role of the 'Key Person'?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate an individual who will be responsible for the day-to-day operational performance of the Franchised Business and who has the authority to bind the Franchisee in all decisions regarding the Franchised Business (the "Key Person"). The Key Person (a) need not be an Owner of the Franchised Business, (b) must successfully complete our Training Program described in Item 11, and (c) must work on premises at your business office.
We have the right to rely on any statement, agreement, or representation made by the Key Person on your behalf. The Key Person must certify your financial statements as correct and complete to the best of the Key Person's knowledge. If the Key Person leaves your organization, you must nominate a replacement within 30 days, and if you have not obtained our approval of a replacement within 90 days, you will be in material default of the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 66)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the franchisee must designate a 'Key Person' responsible for the day-to-day operations of the franchised business. This individual must have the authority to make binding decisions on behalf of the franchisee. The Key Person does not necessarily need to be an owner of the business.
The Key Person must successfully complete the Benjamin Franklin Plumbing training program, as detailed in Item 11 of the FDD, and must work on-site at the business office. Benjamin Franklin Plumbing has the right to rely on any statements, agreements, or representations made by the Key Person on behalf of the franchisee.
Furthermore, the Key Person is required to certify the franchise's financial statements as correct and complete to the best of their knowledge. If the Key Person leaves the organization, the franchisee has 30 days to nominate a replacement. Failure to obtain franchisor approval for a replacement within 90 days constitutes a material default of the Franchise Agreement. This highlights the critical role the Key Person plays in the ongoing operation and compliance of the Benjamin Franklin Plumbing franchise.