FDD Items 3 & 4 · 2024 filing

Benjamin Franklin Plumbing litigation history

What Benjamin Franklin Plumbing disclosed about lawsuits, arbitrations and bankruptcy in the 2024 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 6; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $50K; As stated in Item 3

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2024; Disclosures cover the prior ten years

Extracted from the 2024 Franchise Disclosure Document

Item 3: litigation

2 pending suits (franchisor as plaintiff): one against franchisee for underreporting/trademark misuse/non-compete violations; one against former franchisee for post-term non-compete (settled in bankruptcy proceedings). 3 concluded actions including predecessor suits against franchisees for settlement enforcement and trademark/non-compete disputes.

Item 3 (litigation) · 6 matters disclosed · 2 pending listed

Litigation cases

The franchisor and its predecessor

Pending (2)

Benjamin Franklin Franchising SPE LLC; One Hour Air Conditioning Franchising SPE, LLC; and Mister Sparky Franchising SPE, LLC v. David Michael Plumbing, Inc.; David Michael; and Karla Michael
pending
Brought against a franchisee · filed 2024-02-02 · U.S. District Court for the Eastern District of Michigan · 24-CV-10286-JJCG-APP
“Benjamin Franklin Franchising SPE LLC; One Hour Air Conditioning Franchising SPE, LLC; and Mister Sparky Franchising SPE, LLC v. David Michael Plumbing, Inc.;”Page 16 of the 2024 FDD, Item 3
One Hour Air Conditioning Franchising SPE LLC, Benjamin Franklin Franchising SPE LLC, and Clockwork IP, LLC v. Rocky Top Air, Inc., Gerald Allison, and Benjamin Granger
pending
Brought against a franchisee · filed 2022-11-16 · U.S. District Court for the District of Maryland · 1:22-cv-02980
“… Case No. 1:22-cv- 02980, U.S. District Court for the District of Maryland.”Page 16 of the 2024 FDD, Item 3

Concluded (3)

Benjamin Franklin Franchising, LLC v. Stampede Plumbing, L.L.C., et al.
settled
Brought against a franchisee · Benjamin Franklin Franchising, LLC (BFP, our predecessor) · filed 2020-07-17 · District Court of the 152nd Judicial District, Harris County, Texas · 2020-42646
“… Case No.: 2020-42646, District Court of 152nd Judicial District, Harris County, TX.”Page 16 of the 2024 FDD, Item 3
Benjamin Franklin Franchising, LLC v. Stampede Plumbing LLC, Chris Stanfield and Linda Stanfield
settled
Brought against a franchisee · Benjamin Franklin Franchising, LLC (BFP, our predecessor) · filed 2018-07-11 · U.S. District Court for the Southern District of Texas, Houston Division · 4:18-cv-002384
“… Case No. 4:18-cv-002384, U.S. District Court for the Southern District of Texas, Houston Division.”Page 17 of the 2024 FDD, Item 3
Benjamin Franklin Franchising, LLC v. On Time Plumbers, Inc.
dismissed
Brought against a franchisee · Benjamin Franklin Franchising, LLC (BFP, our predecessor) · filed 2015-05-21 · U.S. District Court for the Middle District of Florida · 8:14-cv-01209-JSM-AEP
“… Case No. 8:14-cv-01209_JSM- AEP, U.S. District Court for the Middle District of Florida.”Page 17 of the 2024 FDD, Item 3
Outcome: “BFP paid Donaldson $50,000 towards OTP’s purchase of the franchise. All other remaining claims between the parties were dismissed, and the parties filed a joint stipulation of dismissal on May 12, 2015.”

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

VenVest Ballard, Inc., et al. v. Clockwork, Inc., et al.
settled
Brought by a franchisee · Clockwork, Inc. (our former parent) and Clockwork IP, LLC (affiliate) · filed 2014-01-31 · U.S. District Court, Central District of California · 5:14-cv-00195-MWF-EX
“… Case No. 5:14-cv-00195-MWF-EX, U.S. District Court, Central District of California.”Page 17 of the 2024 FDD, Item 3

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosure signals that moved the score

How this shows up in the verdict

Active litigation pattern: ongoing sales underreporting suit (David Michael), trademark misuse claims, and non-compete enforcement actions suggest systemic compliance and brand integrity issues
Aggressive growth trajectory (17.8% YoY unit expansion) while defending multiple lawsuits raises concerns about franchisee vetting and support quality

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

Were you, or anyone you know in the system, party to a dispute with the franchisor?
Was it resolved by settlement, arbitration or a court, and on what terms?
Has the number of disputes gone up or down since you signed?

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