Does Benjamin Franklin Plumbing or its affiliates earn revenue from sales made directly to franchisees?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates will earn revenue and profits from sales that we make directly to you.
We may negotiate purchasing arrangements under which vendors agree to make goods or services available to Franchised Businesses on specific terms.
You agree to participate in and abide by the terms of any vendor purchase program established by Franchisor.
To protect the reputation of the Brand, you agree to pay vendors on time.
Subject to applicable law, we may earn money in the form of rebates, licensing fees, administrative fees, commissions, or other payments from vendors based on your purchases.
Subject to applicable laws and our arrangements with the vendors, we have no obligation to remit the funds to you.
- **6.11.
Inventory.** You are required to keep a sufficient inventory of products, merchandise, and supplies in the Franchised Business to meet the Brand Standards (or to meet reasonably anticipated customer demand, if we have not prescribed specific standards).
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing and its affiliates do earn revenue and profits from sales made directly to franchisees. This means that franchisees may be required to purchase certain goods or services directly from the franchisor or its affiliated companies.
This arrangement allows Benjamin Franklin Plumbing to generate additional income streams beyond franchise fees and royalties. While this can be a benefit to the franchisor, prospective franchisees should evaluate whether the pricing and terms offered by Benjamin Franklin Plumbing and its affiliates are competitive. Franchisees are obligated to participate in any vendor purchase programs established by Benjamin Franklin Plumbing.
Furthermore, Benjamin Franklin Plumbing may also receive money from vendors in the form of rebates, licensing fees, administrative fees, or commissions based on franchisee purchases. While the franchisor is not obligated to remit these funds to the franchisee (subject to applicable laws and arrangements with vendors), it's important for franchisees to understand how these arrangements work and whether they impact the overall cost of goods and services. Franchisees are required to maintain sufficient inventory to meet brand standards or reasonably anticipated customer demand.