During the term of the Benjamin Franklin Plumbing franchise, is the non-competition covenant subject to state law?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 14.1 | No involvement in "Competing Business," defined as a business that (i) offers plumbing products or services or other products or services similar to those offered by the Franchised Businesses, or (ii) grants franchises or licenses to others to operate such businesses, or (iii) is the same or substantially similar in nature or purpose to the Franchised Businesses (other than a "BENJAMIN FRANKLIN PLUMBING" business operated under a Franchise Agreement with us). This is subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 69–74)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the non-competition covenant during the term of the franchise is subject to state law. This means that the enforceability and specific terms of the non-compete agreement could vary depending on the state in which the franchise operates.
The franchise agreement states that during the franchise term, a franchisee cannot be involved in a "Competing Business," which is defined as a business that offers similar plumbing products or services, grants franchises or licenses to others for such businesses, or is substantially similar to the Benjamin Franklin Plumbing business. This restriction is designed to protect Benjamin Franklin Plumbing's market share and brand integrity.
Because state laws governing non-compete agreements differ significantly, a prospective Benjamin Franklin Plumbing franchisee should consult with a legal professional to understand the specific regulations in their state. This will help them assess the potential impact of the non-compete clause on their business operations and future opportunities. Understanding these state-specific nuances is crucial for making an informed decision about investing in a Benjamin Franklin Plumbing franchise.