What right does Benjamin Franklin Plumbing grant to the franchisee regarding the operation of the Franchised Business?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
s, and other products sold or used in the Franchised Business. We have the right to modify, discontinue, substitute, and/or add items to the Proprietary Products from time to time in our sole discretion.
- 1.19. "System" means the know-how and system of operation developed for the Brand and owned by Franchisor. The distinctive elements of the System include, but are not limited to: the products and services offered; customer service standards; the warranty program, if applicable; standards and specifications for equipment, technology, supplies, and operations; our advertising and promotional programs and marketing techniques; the exterior and interior design, décor, color scheme, fixtures, and furnishings of the business
premises; and the accumulated experience reflected in our Brand Standards Manuals, training program, and instructional materials.
1.20. "Territory" means the geographic area defined in the Data Sheet and/or in a map and/or list of zip codes attached to the Data Sheet.
2. FRANCHISE GRANT AND TERRITORIAL PROTECTION
- 2.1. Right Granted. We grant you the right, and you undertake the obligation, on the terms and conditions of this Agreement, to establish and operate one (1) Franchised Business at the Approved Location only, and to use the Marks and the System only in connection with the Franchised Business, and only within the Territory. You agree to operate the Franchised Business for the full Agreement term through the Expiration Date as specified in Section 3.
- 2.2. Rights Reserved. We and our affiliates retain all rights not expressly granted to you, including the rights (despite anything to the contrary in Section 2.3 and regardless of the proximity to or effect on the Franchised Business):
- 2.2.1 To establish, operate, franchise, and license others to operate businesses under the Marks at any location outside of the Territory. In addition, if the Territory is one that has an existing customer base due to out-of-territory sales by one or more existing franchisees before the Agreement Date, we may be obligated by contract to allow the existing franchisee(s) to continue providing services to those customers in the Territory for a period of time of up to twenty-four months from the Agreement Date (the "Authorized Time Period"). We will provide you with data provided to us by the existing franchisee(s) within forty-five (45) days after the Agreement Date. After the expiration of the Authorized Time Period, any remaining customers in this group will be transitioned to you;
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, the company grants the franchisee the right and imposes the obligation to establish and operate one franchised business at the approved location. This right extends to using the Benjamin Franklin Plumbing Marks and System, but only in connection with the franchised business and within the designated territory. The franchisee must operate the business for the entire term of the agreement, up to the specified Expiration Date.
Benjamin Franklin Plumbing retains all rights not explicitly granted to the franchisee. This includes the right to establish, operate, franchise, and license others to operate businesses under the Marks outside of the franchisee's territory. Even within the territory, Benjamin Franklin Plumbing may allow existing franchisees to continue serving customers for up to 24 months from the agreement date if those customers were acquired before the new franchise agreement. The company will provide data related to these existing customers within 45 days of the agreement date, and after the 24-month period, these customers will be transitioned to the franchisee.
The franchisee is obligated to accept and perform the terms of agreements, including pricing and payment terms, for locations within their territory. However, if the franchisee cannot or will not perform the required services, Benjamin Franklin Plumbing reserves the right to allow its employees, another franchisee, a subcontractor, or even a competitor to enter the territory to perform those services. Furthermore, franchisees cannot offer products or services through unapproved channels and need written consent to relocate the Franchised Business, even within the Territory.
These stipulations are typical in franchising, as franchisors need to balance franchisee autonomy with maintaining brand consistency and market coverage. Prospective Benjamin Franklin Plumbing franchisees should carefully consider these rights and restrictions, particularly regarding territorial protection, customer service obligations, and approved sales channels, to fully understand the scope and limitations of their franchise operation.