Can Benjamin Franklin Plumbing require arbitration or litigation to be conducted outside of the franchisee's state?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
nd inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation. This subsection applies only if: (i) the term of the franchise is less than 5 years; and
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the franchise agreement generally cannot include a provision that requires arbitration or litigation to be conducted outside of the franchisee's state. However, the document states that a franchisee can agree to conduct arbitration outside of their state at the time of arbitration.
This means that while Benjamin Franklin Plumbing cannot mandate out-of-state arbitration or litigation in the initial franchise agreement, a franchisee can later consent to it. This provides some protection for franchisees, ensuring they aren't forced into distant legal proceedings from the outset.
However, franchisees should be aware of this potential for later agreeing to out-of-state arbitration, and carefully consider the implications before doing so. Factors to consider include the cost and inconvenience of traveling for arbitration, and the potential for being subject to unfamiliar laws and procedures.