Is AB Inc. a party to the Benjamin Franklin Plumbing Franchise Agreement?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in Item 1, AB Inc. provides support and services to BENJAMIN FRANKLIN PLUMBING franchisees under a management agreement with us. AB Inc. was formerly known as Villa BidCo, Inc. until the company changed its name on May 17, 2021. We have included in Exhibit I the audited consolidated financial statements of AB Inc. and subsidiaries which comprise the consolidated balance sheets as of December 31, 2024, and December 31, 2023 and the related consolidated statements of comprehensive loss, of changes in stockholder's equity and of cash flows for the three years then ended December 31, 2024. These financial statements are included for disclosure purposes only; AB Inc. is not a party to the Franchise Agreement we sign with franchisees, nor does it guarantee our obligations under the Franchise Agreement we sign with franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, AB Inc. is not a party to the Franchise Agreement that franchisees sign. However, AB Inc. plays a significant role in supporting the Benjamin Franklin Plumbing franchise system. Specifically, AB Inc. has a management agreement with the franchisor to provide support and services to Benjamin Franklin Plumbing franchisees. AB Inc. also functions as the franchise sales agent for Benjamin Franklin Plumbing.
While AB Inc. is not directly a party to the Franchise Agreement, it is indirectly involved through its parent company, Authority Brands, Inc. Authority Brands, Inc. is the direct parent company of AB Guarantor and the indirect parent of the franchisor. This complex corporate structure arose from a securitization transaction in 2021. The financial statements of AB Inc. are included in the FDD for disclosure purposes, but the document explicitly states that AB Inc. does not guarantee the franchisor's obligations to franchisees.
Despite AB Inc.'s lack of direct contractual obligation under the Franchise Agreement, the franchisor remains responsible for ensuring that all support and services promised to franchisees are delivered. This arrangement means that while franchisees interact with AB Inc. for certain services, their legal recourse for any failures in those services would primarily be against the franchisor, not AB Inc. directly. This distinction is important for prospective franchisees to understand, as it clarifies the lines of responsibility and liability within the Benjamin Franklin Plumbing franchise system.