What exhibit contains the financial statements related to the Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit I to this disclosure document contains the following:
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- The audited consolidated financial statements of AB Assetco LLC ("AB Assetco"), our parent company, (i) as of December 31, 2024 and 2023, and (ii) for each of the three years in the period ended December 31, 2024.
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- A Guarantee of Performance of our obligations by AB Assetco. Our separate financial statements are not included in this disclosure document. Should we fail to fulfill our duties and obligations to our franchisees under their Franchise Agreements, AB Assetco absolutely and unconditionally guarantees to assume those duties and obligations.
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.
As part of the Securitization Transaction described in Item 1, certain subsidiaries of AB Inc., including us, have guaranteed the indebtedness incurred in connection with the Securitization Transaction. Please see the footnotes and supplements to the financial statements in Exhibit I for more information about the Securitization Transaction.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, the audited consolidated financial statements of AB Assetco LLC, the parent company, are found in Exhibit I. This exhibit includes financial statements as of December 31, 2024, and 2023, as well as for each of the three years in the period ended December 31, 2024. Additionally, Exhibit I contains a Guarantee of Performance by AB Assetco, ensuring the parent company will assume the duties and obligations to franchisees should Benjamin Franklin Plumbing fail to do so.
Exhibit I also includes the audited consolidated financial statements of AB Inc. and its subsidiaries, which comprise the consolidated balance sheets as of December 31, 2024, and December 31, 2023, along with related consolidated statements of comprehensive loss, changes in stockholder's equity, and cash flows for the three years then ended December 31, 2024. These statements are included for informational purposes, even though AB Inc. is not a party to the Franchise Agreement and does not guarantee obligations under it.
Prospective franchisees should review Exhibit I carefully to understand the financial health and performance of both AB Assetco and AB Inc., as these entities play significant roles in supporting the Benjamin Franklin Plumbing franchise system. Understanding the Securitization Transaction, as described in the footnotes and supplements to the financial statements within Exhibit I, is also crucial for assessing potential financial risks and obligations.