Under what circumstances related to dispute resolution would Benjamin Franklin Plumbing NOT require arbitration?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Sections 23.2, 23.3 and 23.4 | With the exception of actions for provisional relief, to collect fees due under the Franchise Agreement, to seek an injunction, to protect our intellectual property, to terminate the Franchise Agreement for default, and to enforce post-term obligations, we, you, and the Owners must arbitrate all disputes in Columbia, Maryland. |
| All of these provisions are subject to state law in your |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 69–74)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, there are specific instances where dispute resolution does not require arbitration. Benjamin Franklin Plumbing, its franchisees, and owners are generally obligated to arbitrate all disputes in Columbia, Maryland. However, this requirement has some exceptions.
Benjamin Franklin Plumbing is not required to go to arbitration for actions seeking provisional relief. Provisional relief typically involves seeking temporary court orders to protect rights or assets while a case is pending. Also, arbitration is not required to collect fees due under the Franchise Agreement. Benjamin Franklin Plumbing can pursue legal action in court to recover unpaid royalties or other fees owed by the franchisee.
Benjamin Franklin Plumbing is also exempt from arbitration when seeking an injunction, which is a court order that requires a party to do or cease doing a specific action. This is often used to prevent a franchisee from violating the terms of the franchise agreement. To protect its intellectual property, such as trademarks, trade secrets, and copyrights, Benjamin Franklin Plumbing can pursue legal action in court without going through arbitration. Furthermore, Benjamin Franklin Plumbing can bypass arbitration to terminate the Franchise Agreement for default, meaning if the franchisee fails to meet their obligations under the agreement, Benjamin Franklin Plumbing can terminate the agreement through the court system. Finally, Benjamin Franklin Plumbing is not required to arbitrate to enforce post-term obligations, which are the responsibilities a franchisee has after the franchise agreement expires or is terminated, such as non-compete clauses.
It is important to note that all of these provisions regarding dispute resolution are subject to state law, which means that the specific rules and procedures may vary depending on the state in which the franchise operates. Prospective franchisees should consult with a legal professional to understand how these provisions apply in their specific jurisdiction.