Can a Benjamin Franklin Plumbing franchisee circumvent the non-compete restrictions by engaging in prohibited activity indirectly through another person or entity?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3.2 Neither you nor any person bound by the restrictions of this Section 14 may circumvent the restrictions by engaging in prohibited activity indirectly through any other person or entity.
- 14.3.3 For the individuals who are bound personally by the restrictions in this Section 14 or by a separate non-competition agreement with you or us, the time period in Section 14.2 will run from the expiration, termination, or transfer of the Franchised Business or from the end of the individual's relationship with Franchisee, whichever occurs sooner.
- 14.3.4 The time periods in Section 14.2 and Section 14.3.3 will be tolled for any period of time during which Franchisee or the restricted individual is in breach of the section and will resume only when Franchisee or such person begins or resumes compliance.
- 14.3.6 You represent that Franchisee and each of its Owners possess skills and abilities of a general nature that provide them with other opportunities for employment and, therefore, our enforcement of the restrictions in Sections 14.2 and 14.3.3 will not deprive Franchisee or any of its Owners of their personal goodwill or ability to earn a living through alternative means.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, franchisees are explicitly prohibited from circumventing non-compete restrictions through indirect means. This means a franchisee cannot bypass the restrictions by engaging in prohibited activities through another person or entity.
This provision is designed to prevent franchisees from using loopholes to compete with Benjamin Franklin Plumbing during and after the franchise term. The FDD states that violating the non-compete agreement would result in irreparable injury, allowing Benjamin Franklin Plumbing to seek injunctive relief in addition to other remedies. This underscores the seriousness with which Benjamin Franklin Plumbing views these restrictions.
This restriction extends not only to the franchisee but also to individuals bound by separate non-competition agreements. The time period for non-competition is tolled during any breach and resumes only upon compliance, further reinforcing the franchisor's commitment to enforcing these restrictions. The franchisee's skills and abilities are acknowledged as providing other employment opportunities, ensuring that the enforcement of these restrictions will not deprive them of their ability to earn a living through alternative means.