Under what circumstances can Benjamin Franklin Plumbing instruct the franchisee to not de-identify the business?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
To preserve the value of these options, we may issue to you, and you are required to comply with, written instructions to refrain from, delay, or reverse any of the actions required of you under Section 17.2.
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 can issue written instructions requiring a franchisee to refrain from, delay, or reverse actions related to de-identification of the business. This instruction is permissible to preserve the value of Benjamin Franklin Plumbing's options to assume customer agreements or transition business operations after the agreement's expiration or termination.
De-identification typically involves ceasing operation of the franchised business, removing Benjamin Franklin Plumbing signage and branding from the location and service vehicles, and making changes to dissociate the business from the Benjamin Franklin Plumbing system. However, Benjamin Franklin Plumbing can instruct the franchisee to not take these steps under certain conditions.
This provision allows Benjamin Franklin Plumbing to maintain control over the transition process and protect its interests in the customer base and ongoing business operations. For a prospective franchisee, this means that upon termination or expiration of the franchise agreement, they may be required to continue operating under the Benjamin Franklin Plumbing brand and system if instructed to do so by the franchisor. This could impact the franchisee's plans for exiting the business or transitioning to a new venture.