What specific obligation does a Benjamin Franklin Plumbing franchisee undertake regarding the right granted to them?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, as part of the franchise agreement, the franchisee undertakes the obligation to establish and operate one franchised business at the approved location. They must use the Benjamin Franklin Plumbing Marks and the System only in connection with the franchised business and only within the designated territory.
This means a franchisee's rights are limited to a specific location and territory, and they must actively operate the business. The franchisee cannot simply hold the rights without running the business. This obligation ensures that Benjamin Franklin Plumbing's brand is actively represented and that the franchisee is committed to building the business within their assigned area.
The franchisee is obligated to operate the franchised business for the entire term of the agreement, up to the expiration date. This clause ensures the franchisee's long-term commitment to the Benjamin Franklin Plumbing brand and system. It also allows Benjamin Franklin Plumbing to maintain consistent service and brand representation throughout the duration of the franchise agreement.
Benjamin Franklin Plumbing and its affiliates retain all rights not expressly granted to the franchisee. This includes the right to establish, operate, franchise, and license others to operate businesses under the Marks at any location outside of the Territory. This ensures that Benjamin Franklin Plumbing can continue to expand its brand presence without being restricted by individual franchise agreements, except within the franchisee's protected territory.