Can Benjamin Franklin Plumbing prohibit a franchisee from attending meetings or seminars if they are in default?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to the termination of this Agreement, if you fail to pay any amounts owed to us or our affiliates or fail to comply with any term of this Agreement, then in addition to any right we may have to terminate this Agreement or to bring a claim for damages, we will have the right to take the actions set out below and continue them until you have cured the default to our satisfaction.
The taking of any of the actions permitted in this Section 16.6 will not suspend or release you from any obligation that would otherwise be owed to us or our affiliates under the terms of this Agreement.
We may:
16.6.1 Remove the listing of the Franchised Business from all advertising published or approved by us;
16.6.2 Prohibit you from attending any meetings or seminars held or sponsored by us or taking place on our premises;
16.6.3 Suspend access to the Call Center, the Franchisee Portal, and any technology systems we provide you access to, whether it is our technology or a third-party license; and/or
16.6.4 Suspend services provided to you by us or our affiliates under this Agreement, including but not limited to inspections, training, marketing assistance, and the sale of products and supplies.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, if a franchisee fails to pay amounts owed or comply with any term of the Franchise Agreement, Benjamin Franklin Plumbing has specific rights before terminating the agreement. One of these rights is to prohibit the franchisee from attending any meetings or seminars held or sponsored by Benjamin Franklin Plumbing or taking place on their premises. This action can be taken and continued until the franchisee cures the default to Benjamin Franklin Plumbing's satisfaction.
This provision means that if a Benjamin Franklin Plumbing franchisee is in default, they may be excluded from important networking and training opportunities. These meetings and seminars are likely valuable for staying updated on best practices, new technologies, and brand standards. Being barred from these events could hinder a franchisee's ability to improve their business and resolve the default, potentially worsening the situation.
However, the FDD clarifies that taking such actions does not suspend or release the franchisee from any obligations they owe to Benjamin Franklin Plumbing or its affiliates under the terms of the agreement. Therefore, even if a franchisee is prohibited from attending meetings or seminars, they are still responsible for fulfilling all other contractual obligations. This ensures that Benjamin Franklin Plumbing can enforce the terms of the agreement while also taking steps to address the franchisee's default.