Does BuyMax, an affiliate, negotiate purchasing arrangements for Benjamin Franklin Plumbing franchisees?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
We, or our affiliate, BuyMax, negotiate contracts with providers of goods and services, including but not limited to insurance, financing, fuel cards, and fleet programs for our franchisees, our affiliates' company-owned outlets, several of our affiliates' franchisees; and for independent BuyMax members who participate in the program for a fee. BuyMax does not negotiate purchase agreements on behalf of individual members. Terms of purchase agreements may vary based on any number of factors and prices may change from time-to-time.
Other than as noted above, we do not currently negotiate purchasing arrangements with vendors on behalf of our franchisees, but we reserve the right to do so, including pricing terms. Our ability to negotiate and maintain arrangements with vendors may depend on the participation of as many BENJAMIN FRANKLIN PLUMBING franchisees as possible. Accordingly, if we name a specific vendor for a product or service, you must obtain the product or service from that designated vendor. You must comply with the terms and conditions included in the contract with a specific vendor and, if applicable, through the purchasing arrangements and/or programs that we require.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–43)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, BuyMax, an affiliate of the franchisor, negotiates contracts with providers of goods and services for Benjamin Franklin Plumbing franchisees. These goods and services include insurance, financing, fuel cards, and fleet programs. However, BuyMax does not negotiate purchase agreements on behalf of individual members. The terms of purchase agreements may vary, and prices are subject to change.
Benjamin Franklin Plumbing franchisees are required to participate in vendor purchase programs established by the franchisor and abide by their terms. The franchisor also reserves the right to require franchisees to purchase products, equipment, materials, or other items related to the franchised business directly from BuyMax or through purchasing programs arranged by BuyMax or any other of its affiliates. As of the date of the disclosure document, franchisees are required to use BuyMax's BuyFin customer financing services if they choose to offer customer financing in their Benjamin Franklin Plumbing business.
Benjamin Franklin Plumbing designates approved vendors for certain items, and BuyMax negotiates purchasing arrangements with many of these vendors. As of the date of the disclosure document, these include software such as the ServiceTitan platform. The franchisor estimates that the proportion of required purchases and leases from approved suppliers is 20% to 25% for Conversion Franchisees and 50% to 60% for Start-Up Franchisees. The current proportion of required purchases and leases from approved suppliers in operating the franchised business is approximately 40%, but this amount is subject to change.