What happens if a Benjamin Franklin Plumbing franchisee does not obtain the required insurance coverage?

According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, franchisees must provide certificates of insurance before opening their franchise and evidence of renewal or replacement at least 30 days before a policy's expiration. If a franchisee fails to obtain the required insurance coverage, Benjamin Franklin Plumbing has the right, but not the obligation, to obtain insurance on the franchisee's behalf.

If Benjamin Franklin Plumbing exercises its right to obtain insurance for the franchisee, the franchisee is responsible for reimbursing Benjamin Franklin Plumbing for the cost of the insurance. In addition to the cost of the insurance policy itself, the franchisee must also pay a reasonable fee to Benjamin Franklin Plumbing for their services in procuring the insurance.

This provision ensures that all Benjamin Franklin Plumbing franchises maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. It is crucial for prospective franchisees to understand these requirements and factor the cost of insurance into their financial planning. Franchisees should also ensure they understand the minimum coverage requirements, which include Comprehensive General Liability, Automobile Liability, Employer Liability, and Workers Compensation, as well as recommended coverage such as Commercial Umbrella Policy, Business Interruption, Employment Practices, and Cyber Liability/Data Compromise.