If a Benjamin Franklin Plumbing franchisee transfers their agreement, when does the non-compete period begin?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
For two (2) years after (i) your relationship with Franchisee ends; (ii) the expiration or termination of the Franchise Agreement; or (iii) the approved transfer of the Franchise Agreement to a new franchisee, whichever comes first, you will not, without Franchisor's consent (which Franchisor may withhold at its discretion) either directly or indirectly (such as through an affiliate or a family member) own, operate, engage in, be employed by, provide assistance to, or have any economic interest in any Competing Business that is located in or serves customers within (i) the Territory defined in the Franchise Agreement, (ii) forty (40) miles of the Territory, (iii) any zip code where Franchisee's Franchised Business served customers while the Franchise Agreement was in effect, (iv) 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) the territory serviced by any business operated by Franchisor, its affiliates or their licensees under the Marks plus the area formed by extending the boundaries of that territory ten (10) miles in all directions.
The time period above will be tolled for any period of time during which you are in breach of this Section and will resume only when you begin or resume compliance.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, the non-compete period for individuals associated with a Benjamin Franklin Plumbing franchise begins after the approved transfer of the Franchise Agreement to a new franchisee. Specifically, the non-compete lasts for two years following the transfer.
During this two-year period, the individual is restricted from owning, operating, or being involved with any Competing Business. This restriction applies within the territory defined in the Franchise Agreement, forty miles of the territory, any zip code where the Franchised Business served customers, the territory of any other then-existing Franchised Businesses plus a ten-mile extension, or the territory serviced by Benjamin Franklin Plumbing, its affiliates, or licensees plus a ten-mile extension.
The time period during which the non-compete is in effect can be extended if the individual breaches the non-compete agreement. The non-compete period will be tolled during the period of the breach and will resume only when compliance begins or resumes. This ensures that Benjamin Franklin Plumbing is protected from unfair competition from former franchisees or their associates who may have gained knowledge and experience while operating under the Benjamin Franklin Plumbing brand.