What happens if the termination of a Benjamin Franklin Plumbing franchise agreement is contested?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 FDD, if a Benjamin Franklin Plumbing franchise termination is contested, the franchisor retains certain rights regarding the franchise's operations. Specifically, Benjamin Franklin Plumbing can exercise its options related to the agreement's expiration or termination at any point between delivering a written termination notice and 30 days after the termination date. If the termination is contested, this period extends to 30 days after the arbitration or court ruling that upholds the termination. These options allow Benjamin Franklin Plumbing to manage the transition of the business.
These options include the right, but not the obligation, to assume the customer agreements. This means Benjamin Franklin Plumbing can take over the franchisee's rights and responsibilities under those agreements. The franchisee is obligated to facilitate conversations with customers to ensure a smooth transition of business operations. Additionally, the franchisee must remit any payments received from customers for services not yet performed to Benjamin Franklin Plumbing or its designee.
To preserve the value of these options during a contested termination, Benjamin Franklin Plumbing may issue written instructions to the franchisee. The franchisee is required to comply with these instructions, which may involve refraining from, delaying, or reversing actions typically required upon termination. This ensures Benjamin Franklin Plumbing can effectively manage the business's transition and maintain customer relationships even during a dispute over the termination.