Can Benjamin Franklin Plumbing suspend services provided to the franchisee if they are in default?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to the termination of this Agreement, if you fail to pay any amounts owed to us or our affiliates or fail to comply with any term of this Agreement, then in addition to any right we may have to terminate this Agreement or to bring a claim for damages, we will have the right to take the actions set out below and continue them until you have cured the default to our satisfaction.
The taking of any of the actions permitted in this Section 16.6 will not suspend or release you from any obligation that would otherwise be owed to us or our affiliates under the terms of this Agreement.
We may:
- 16.6.4 Suspend services provided to you by us or our affiliates under this Agreement, including but not limited to inspections, training, marketing assistance, and the sale of products and supplies.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, Benjamin Franklin Plumbing has the right to suspend services to a franchisee if they fail to pay amounts owed or comply with any term of the agreement. This is a pre-termination option available to Benjamin Franklin Plumbing, meaning it can be enacted before the franchise agreement is terminated.
The services that Benjamin Franklin Plumbing may suspend include inspections, training, marketing assistance, and the sale of products and supplies. It is important to note that the suspension of these services does not release the franchisee from any obligations under the agreement. The franchisee is still responsible for fulfilling all financial and operational requirements, even while the services are suspended.
This provision protects Benjamin Franklin Plumbing by allowing them to withhold support and resources from franchisees who are not meeting their obligations. This can motivate franchisees to cure their defaults and comply with the franchise agreement. For a prospective franchisee, this highlights the importance of maintaining compliance with all terms of the agreement to avoid disruption to their business operations and loss of support from Benjamin Franklin Plumbing.