Can Benjamin Franklin Plumbing terminate the franchise agreement if the franchisee refuses an inspection?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
acquires any interest in a Franchised Business other than the Franchised Business franchised under this Agreement, Franchisee shall unconditionally guarantee full performance and discharge of all of the franchisee's obligations under the franchise agreement for such other Franchised Business, including without limitation the payment of all Royalty Fees, advertising fees, and other obligations.
16.6. Pre-Termination Options of Franchisor. 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:
16.6.1 Remove the listing of the Franchised Business from all advertising published or approved by us;
16.6.2 Prohibit you from attending any meetings or seminars held or sponsored by us or taking place on our premises;
16.6.3 Suspend access to the Call Center, the Franchisee Portal, and any technology systems we provide you access to, whether it is our technology or a third-party license; and/or
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.
16.7. Step In Rights. If you fail to cure any default within the applicable cure period (if any), we have the right, but not the obligation, to assume temporary management of the Franchised Business using our own employees or contractors (which may include other franchisees) until such time as we determine that the default has been cured, and you are otherwise in compliance with this Agreement. This right is in addition to our right to terminate this Agreement, and not in lieu of such right or any other rights we may have against you. If we exercise the rights described in this Section, we will be permitted to enter the premises and exercise complete authority with respect to the operation of the Franchised Business. You will be required to pay us (or our designee) a fee of up to $500 per day and reimburse us (or our designee) for all costs and overhead, if any, incurred in connection with the temporary operation of your Franchised Business, including, without limitation, the costs of our personnel for supervising and staffing the Franchised Business and their travel and lodging.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, while refusal of an inspection alone is not explicitly stated as grounds for immediate termination, Benjamin Franklin Plumbing has several options if a franchisee fails to comply with the terms of the agreement. Specifically, Benjamin Franklin Plumbing can suspend services, including inspections.
Benjamin Franklin Plumbing can also exercise "step in rights" to assume temporary management of the franchise if a franchisee fails to cure any default. This involves the franchisor taking control of the business until the default is resolved. The franchisee would be required to pay a fee of up to $500 per day to Benjamin Franklin Plumbing, as well as cover all costs and overhead associated with the temporary operation.
Furthermore, the FDD states that prior to termination, if a franchisee fails to comply with any term of the agreement, Benjamin Franklin Plumbing has the right to take actions such as removing the business's listing from advertising, prohibiting attendance at meetings, and suspending access to support systems. While these are not direct termination clauses related to refusing an inspection, they highlight the franchisor's ability to enforce compliance and the potential consequences of non-compliance, which could ultimately lead to termination if the issues are not resolved.