After termination of the Benjamin Franklin Plumbing agreement, what geographic areas are included in the non-compete restrictions?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
For two (2) years after (i) your relationship with Franchisee ends; (ii) the expiration or termination of the Franchise Agreement; or (iii) the approved transfer of the Franchise Agreement to a new franchisee, whichever comes first, you will not, without Franchisor's consent (which Franchisor may withhold at its discretion) either directly or indirectly (such as through an affiliate or a family member) own, operate, engage in, be employed by, provide assistance to, or have any economic interest in any Competing Business that is located in or serves customers within (i) the Territory defined in the Franchise Agreement, (ii) forty (40) miles of the Territory, (iii) any zip code where Franchisee's Franchised Business served customers while the Franchise Agreement was in effect, (iv) the territory of any other then-existing Franchised Businesses plus the area formed by extending the boundaries of that territory ten (10) miles in all directions, or (v) the territory serviced by any business operated by Franchisor, its affiliates or their licensees under the Marks plus the area formed by extending the boundaries of that territory ten (10) miles in all directions.
The time period above will be tolled for any period of time during which you are in breach of this Section and will resume only when you begin or resume compliance.
You represent that enforcement of the restrictions contained in Paragraphs 3 and 4 will not deprive you of the ability to earn a living.
If a court rules that any of these restrictions are unenforceable by virtue of its scope or in terms of geographic area, type of business activity prohibited, and/or length of time, you agree to comply with any lesser restriction deemed enforceable by the court.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 FDD, after the Benjamin Franklin Plumbing franchise agreement ends, either through termination, expiration, or approved transfer, a non-compete agreement restricts involvement in any "Competing Business" for a period of two years. This restriction applies to owning, operating, being employed by, providing assistance to, or having any economic interest in a Competing Business.
The geographic scope of this non-compete includes several specific areas. First, it covers the territory defined in the Franchise Agreement itself. Second, it extends to a 40-mile radius around that territory. Third, the non-compete applies to any zip code where the Benjamin Franklin Plumbing franchise served customers during the term of the agreement. Fourth, it includes the territory of any other existing Benjamin Franklin Plumbing franchise, plus a 10-mile buffer zone around that territory. Finally, it encompasses the territory serviced by any business operated by the franchisor, its affiliates, or their licensees under the Benjamin Franklin Plumbing marks, along with a 10-mile buffer zone.
It's important to note that the enforcement of these restrictions is subject to certain conditions. The franchisor's consent can allow a franchisee to engage in a competing business, and the time period of the non-compete can be extended if the franchisee breaches the agreement. Additionally, if a court finds any of the restrictions too broad, the franchisee agrees to comply with a lesser restriction deemed enforceable by the court. This non-compete agreement aims to protect Benjamin Franklin Plumbing's market and confidential information while allowing franchisees to earn a living, as stated in the FDD.