Does Benjamin Franklin Plumbing have the right to change the required insurance coverage amounts?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.2. Changes. We have the right to increase the amounts of insurance coverage required and to require different or additional kinds of insurance. If you do not have the insurance required by this Agreement, we have the right (but no obligation) to obtain insurance on your behalf. If we do so, you agree to reimburse us for the cost of insurance, plus a reasonable fee for our services.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing has the authority to modify insurance requirements for franchisees. Specifically, Benjamin Franklin Plumbing retains the right to increase the required amounts of insurance coverage and to mandate different or additional types of insurance.
This means that a franchisee may need to adjust their insurance policies during the term of their agreement to comply with Benjamin Franklin Plumbing's evolving requirements. If a franchisee fails to maintain the required insurance, Benjamin Franklin Plumbing has the option, but not the obligation, to obtain insurance on the franchisee's behalf.
In such cases, the franchisee is responsible for reimbursing Benjamin Franklin Plumbing for the cost of the insurance, along with a reasonable service fee. This provision ensures that Benjamin Franklin Plumbing can protect its brand and system-wide interests by ensuring all franchisees maintain adequate insurance coverage, while also placing the financial burden of compliance on the franchisee.