What are the requirements for a Benjamin Franklin Plumbing franchisee to renew or extend their franchise term?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| h. "Cause" defined – non-curable defaults | Section 16.1 | Non-curable defaults include: failure to obtain an Approved Location or to open for business by deadline; failure to complete pre-opening training to our satisfaction; unauthorized closing; loss of premises or right to do business; refusing inspection or access to records; operating Competing Business (see q. below); unapproved transfer of ownership or business assets; knowing misuse or disclosure of our confidential information; maintaining false books, underreporting sales, engaging in fraud or embezzlement, or misappropriating employee funds; conviction of felony or certain other crimes; insolvency, receivership, or dissolution of your business entity or loss of business license; if Franchisee or any Owner appears on a list of "blocked" persons under any anti-terrorism or similar law; breach of essential provision; failure to maintain required insurance; failure to attempt to contact a complaining customer or to resolve customer complaint; Key Person, Owners of Franchisee, and/or your employees, as designated by us (collectively, "Designated Representatives") or a Franchisee Qualified Substitute's failure to attend our annual convention for three consecutive years; failure to conduct background checks; repeated defaults even if cured, unauthorized use of the Marks or engaging in conduct we reasonably believe threatens to impair the Marks or our reputation, and not curing within 24 hours after notice from us; violating health, safety, or sanitation law or operating the Franchised Business in a manner that presents a health or safety hazard to your employees, customers or the general public; four or more territory infringement violations even if Territory Infringement Fee is paid. |
| i. Your obligations on termination/non renewal | Sections 16.8 and 17 | We have the option to assume your lease (if any), buy the business assets, and take over your customer contracts. If we do not exercise these options, your obligations include ceasing to operate the Franchised Business, complete de-branding, deactivating or transferring domain name registrations and social media accounts for the Franchised Business, transferring your business telephone number and listings to us, paying all amounts due, returning all of our materials, and complying with confidentiality and non-compete restrictions, among others (also see o. and r. below). If termination was based on your default, you must also pay us liquidated damages (see Item 6). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 69–74)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, Item 17 outlines various aspects of the franchise relationship, including obligations upon termination or non-renewal. Specifically, if a Benjamin Franklin Plumbing franchise is not renewed, the franchisee has several obligations. These include ceasing operation of the franchised business, completing de-branding of the business, and deactivating or transferring any domain name registrations and social media accounts associated with the franchise. The franchisee must also transfer their business telephone number and listings to the franchisor.
Additionally, the franchisee is required to pay all outstanding amounts owed to Benjamin Franklin Plumbing and return all materials provided by the franchisor. Compliance with confidentiality and non-compete restrictions is also mandatory. If the termination or non-renewal is based on the franchisee's default, they may also be required to pay liquidated damages as detailed in Item 6 of the FDD.
These stipulations ensure a clean break and protect Benjamin Franklin Plumbing's brand and customer relationships. Prospective franchisees should carefully consider these obligations and restrictions, as they can significantly impact their business operations and future opportunities after the franchise term ends. Understanding these requirements is crucial for making an informed decision about investing in a Benjamin Franklin Plumbing franchise.