Does AB Assetco guarantee the performance of Benjamin Franklin Plumbing's obligations?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit I to this disclosure document contains the following:
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- The audited consolidated financial statements of AB Assetco LLC ("AB Assetco"), our parent company, (i) as of December 31, 2024 and 2023, and (ii) for each of the three years in the period ended December 31, 2024.
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- A Guarantee of Performance of our obligations by AB Assetco. Our separate financial statements are not included in this disclosure document. Should we fail to fulfill our duties and obligations to our franchisees under their Franchise Agreements, AB Assetco absolutely and unconditionally guarantees to assume those duties and obligations.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 FDD, AB Assetco does guarantee the performance of Benjamin Franklin Plumbing's obligations. The FDD states that AB Assetco, the parent company of Benjamin Franklin Plumbing, provides a Guarantee of Performance. This means that should Benjamin Franklin Plumbing fail to fulfill its duties and obligations to its franchisees under their Franchise Agreements, AB Assetco absolutely and unconditionally guarantees to assume those duties and obligations.
This guarantee is a significant benefit for prospective Benjamin Franklin Plumbing franchisees. It provides an added layer of security, assuring franchisees that the franchisor's obligations will be met even if the franchisor itself faces difficulties. This type of guarantee from a parent company is not always standard in franchising, so it represents a notable commitment from AB Assetco to the Benjamin Franklin Plumbing brand and its franchisees.
It is important for potential franchisees to review the full guarantee document, which is included as an exhibit to the FDD, to understand the specific terms and conditions of the guarantee. This includes understanding the scope of the obligations covered and any limitations that may apply. Examining AB Assetco's financial statements, which are also included in the FDD, can provide further insight into the parent company's ability to fulfill its guarantee.