Who must certify the financial statements submitted by a Benjamin Franklin Plumbing franchisee?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
At our request made within fifteen (15) days after the end of a calendar month, you are required to submit a statement of financial condition (a balance sheet) as of the end of the calendar month and a Profit and Loss financial statement for the month and for the fiscal year-to-date.
The financial statements are required to be certified as correct and complete by the Key Person to the best of the Key Person's knowledge.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the Key Person is required to certify the financial statements submitted by the franchisee. Specifically, the franchisee must submit a statement of financial condition (balance sheet) at the end of each calendar month, as well as a profit and loss financial statement for the month and fiscal year-to-date.
The Key Person must certify that these financial statements are correct and complete to the best of their knowledge. Benjamin Franklin Plumbing retains the right to request these financial statements on a more frequent basis if deemed necessary.
This requirement ensures that Benjamin Franklin Plumbing receives regular and verified financial updates from its franchisees, allowing them to monitor the financial health of each franchise and the overall network. The Key Person's certification adds a layer of accountability, as they are attesting to the accuracy of the financial information provided. Franchisees should ensure their Key Person is well-versed in financial record-keeping and reporting to comply with this requirement.