What was the resolution of the enforcement action between Benjamin Franklin Plumbing and Stampede Plumbing LLC?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
and filed for non-suit without prejudice which was granted on November 1, 2021.
Benjamin Franklin Franchising, LLC v. Stampede Plumbing LLC, Chris Stanfield and Linda Stanfield, Case No. 4:18-cv-002384, U.S. District Court for the Southern District of Texas, Houston Division. On July 11, 2018, our predecessor filed suit against a former franchisee, Stampede Plumbing LLC, and its two owners, Chris Stanfield and Linda Stanfield (collectively, "Stampede"), to enforce a settlement agreement that BFP had reached with Stampede in April 2018. Under the April 2018 agreement, Stampede agreed to pay our predecessor $1,000,000 in exchange for termination of Stampede's existing Franchise Agreements and a mutual release between the parties. The enforcement action was resolved by a second settlement agreement in which 1) Stampede agreed to pay BFP $1,000,000; 2) the Stampede Franchise Agreements were terminated; 3) Stampede agreed to entry of an Agreed Judgment of $2,500,000 in the event that Stampede fails to make payment in accordance with the parties' agreement; 4) Stampede agreed to de-identify and cease using any of our marks, or any similar marks; and 5) all claims between the parties were dismissed. The Court dismissed the case on December 14, 2018.
VenVest Ballard, Inc., et al. v. Clockwork, Inc., et al., Case No. 5:14-cv-00195-MWF-EX, U.S. District Court, Central District of California. On January 31, 2014, related former franchisees of the One Hour, Mister Sparky, and BENJAMIN FRANKLIN PLUMBING brands (all owned by George Donaldson) sued our former parent company, Clockwork, Inc., and our affiliate, Clockwork IP, LLC (collectively "Defendants"). The lawsuit arose from a dispute over (1) whether a slogan used and purportedly owned by a Donaldson-owned company infringed our affiliates' trademarks; and (2) the enforceability of noncompetition provisions in a contract separate from the Franchise Agreements. The complaint sought a declaratory judgment that the slogan did not infringe our affiliate's trademarks and that the non-competition provisions were void under California law. The complaint also alleged unfair competition.
Source: Item 3 — LITIGATION (FDD pages 14–15)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, there were two legal cases involving Benjamin Franklin Franchising, LLC and Stampede Plumbing LLC. The first case, filed on July 11, 2018, in the U.S. District Court for the Southern District of Texas, Houston Division, sought to enforce a settlement agreement reached in April 2018. Under the original April 2018 agreement, Stampede Plumbing LLC was to pay Benjamin Franklin Plumbing $1,000,000 in exchange for the termination of their franchise agreements and a mutual release between the parties. The case was resolved via a second settlement agreement.
Under the second settlement agreement, Stampede Plumbing LLC agreed to several conditions. First, Stampede agreed to pay Benjamin Franklin Plumbing $1,000,000. Second, the Stampede Plumbing LLC franchise agreements were terminated. Third, Stampede Plumbing LLC agreed to an Agreed Judgment of $2,500,000 in the event they failed to make payments according to the agreement. Fourth, Stampede Plumbing LLC agreed to stop using Benjamin Franklin Plumbing's marks or any similar marks. Finally, all claims between the parties were dismissed, and the Court dismissed the case on December 14, 2018.
There was a second case filed on July 17, 2020, in the District Court of 152nd Judicial District, Harris County, TX. This suit was filed against a former franchisee, Stampede Plumbing, L.L.C., and its two owners, to enforce the terms of a settlement agreement reached in April 2018, where Stampede agreed to pay $1,000,000 for termination of franchise agreements and a mutual release. The defendants defaulted, and Stampede's owners filed for bankruptcy. Benjamin Franklin Plumbing entered into a settlement in the bankruptcy proceeding and filed for non-suit without prejudice, which was granted on November 1, 2021. This means that Benjamin Franklin Plumbing could potentially bring the suit again in the future.