Is Benjamin Franklin Plumbing considered a 'Securitization Entity'?

According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, several entities, including the Guarantor, Issuer, AB Assetco, and their subsidiaries, are collectively referred to as "Securitization Entities." Benjamin Franklin Franchising SPE LLC, which is the actual franchisor for Benjamin Franklin Plumbing, is a wholly-owned subsidiary of AB Assetco LLC. Therefore, Benjamin Franklin Franchising SPE LLC is included in the definition of Securitization Entities.

For a prospective franchisee, this designation is important because it relates to the financial structure and obligations of the overall franchise system. The parent company, Authority Brands Inc., completed a whole business securitization on May 14, 2021, which involves pooling assets to back securities sold to investors.

This securitization could impact franchisees indirectly. For example, it may influence how the franchisor manages its debt and allocates resources. While the FDD doesn't detail the specific implications, franchisees should understand that the financial health and decisions of the parent company can affect the entire franchise network. It would be prudent for potential franchisees to inquire about the details of the securitization and its potential impact on the Benjamin Franklin Plumbing franchise system.