After the Benjamin Franklin Plumbing franchise is terminated or expires, for how long does the non-competition covenant apply?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 14.1 | No involvement in "Competing Business," defined as a business that (i) offers plumbing products or services or other products or services similar to those offered by the Franchised Businesses, or (ii) grants franchises or licenses to others to operate such businesses, or (iii) is the same or substantially similar in nature or purpose to the Franchised Businesses (other than a "BENJAMIN FRANKLIN PLUMBING" business operated under a Franchise Agreement with us). This is subject to state law. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 14.2 | No involvement with Competing Business for two years after expiration, termination, or approved transfer of the franchise. Applies if the Competing Business is located or serves customers (i) within the Territory, (ii) within forty (40) miles of the Territory, (iii) within any zip code where the Franchised Business served customers during the term, (iv) within the territory of any other then existing Franchised Businesses plus the area formed by extending the boundaries of that territory ten (10) miles in all directions, or (v) within the territory serviced by any business operated under the Marks by us or our affiliates, plus the area formed by extending the boundaries of that territory ten (10) miles in all directions. This is subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 69–74)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, franchisees are subject to a non-competition covenant for two years after the expiration, termination, or approved transfer of the franchise. This restriction prevents former franchisees from engaging in a "Competing Business," which includes businesses offering similar plumbing products or services, granting franchises for such businesses, or being substantially similar to a Benjamin Franklin Plumbing franchise. This covenant is subject to state law, meaning its enforceability can vary depending on the jurisdiction.
The non-compete applies if the competing business is located or serves customers within specific geographic areas. These areas include the former franchisee's territory, within 40 miles of that territory, any zip code where the franchised business served customers during its operation, the territory of any other existing Benjamin Franklin Plumbing franchises plus a 10-mile buffer, or the territory serviced by any business operated under the Benjamin Franklin Plumbing marks by the company or its affiliates, also with a 10-mile buffer.
This post-term non-compete is a standard practice in franchising to protect the brand's market share, customer relationships, and confidential information. Prospective Benjamin Franklin Plumbing franchisees should carefully consider the scope and duration of this covenant, as it could significantly impact their ability to work in the plumbing industry after leaving the franchise system. It is advisable to seek legal counsel to understand the enforceability and implications of the non-compete agreement in their specific state.