What is the Benjamin Franklin Plumbing franchisee's obligation regarding customer agreements upon termination or expiration of the franchise agreement?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
To this end, each customer agreement must include a clause providing us the unconditional right (but not an obligation) to assume (directly or through a designee) the customer agreement upon the termination or expiration of this Agreement, including all of your rights and obligations thereunder that arise from and after such assumption.
Upon the expiration or termination of this Agreement, you agree to facilitate our conversations with customers to ensure an orderly transition of the business operations.
You agree to pay over to us (or our designee) any amounts (or a pro rata portion of any amounts) paid to you by your customers for services that you have not yet performed.
- 17.1.4 We can exercise any or all of our options under Sections 17.1.1, 17.1.2 and 17.1.3: (a) within thirty (30) days after the expiration of the Agreement Term, in the case of expiration of this Agreement; and (b) in the case of termination of this Agreement, at any time between the date of delivery of written notice of termination and thirty (30) days after the effective date of termination (or after the arbitration or court ruling upholding the termination, if termination is contested).
We may assign these options to another person or entity.
To preserve the value of these options, we may issue to you, and you are required to comply with, written instructions to refrain from, delay, or reverse any of the actions required of you under Section 17.2.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, the franchisee has specific obligations regarding customer agreements. Each customer agreement must include a clause granting Benjamin Franklin Plumbing the unconditional right, but not the obligation, to assume the customer agreement. This includes all rights and obligations arising from and after such assumption.
Furthermore, the franchisee agrees to facilitate conversations between Benjamin Franklin Plumbing and the customers to ensure a smooth transition of business operations. The franchisee is also obligated to transfer to Benjamin Franklin Plumbing any amounts received from customers for services that have not yet been performed.
Benjamin Franklin Plumbing has the option to exercise its rights to acquire customer agreements within thirty days after the agreement's expiration or, in the case of termination, between the notice of termination and thirty days after the termination date. These options can be assigned to another entity. To protect the value of these options, Benjamin Franklin Plumbing may issue written instructions to the franchisee to delay or reverse actions required under Section 17.2 of the agreement.