What financial statements are Benjamin Franklin Plumbing franchisees required to submit upon request?
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.
We have the right to require financial statements on a more frequent periodic basis.
At our request, you are required to submit to us a copy of the federal and state tax returns for the Franchised Business for the most recently filed tax year.
At our request, you agree to furnish an annual statement of financial condition for each individual or corporate guarantor of your obligations to us and, if applicable, for each of Franchisee's direct and indirect corporate parents.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, franchisees must submit certain financial statements and tax returns if requested by the company. Within 15 days of the end of each calendar month, Benjamin Franklin Plumbing may request a statement of financial condition (balance sheet) for that month, as well as a profit and loss statement for the month and the fiscal year-to-date. The Key Person, presumably the franchisee or a designated manager, must certify these statements as correct and complete to the best of their knowledge. Benjamin Franklin Plumbing retains the right to request these financial statements more frequently than monthly.
In addition to monthly financial statements, Benjamin Franklin Plumbing franchisees are also required to submit copies of their federal and state tax returns for the most recently filed tax year, if requested. Furthermore, the company can request an annual statement of financial condition from any individual or corporate guarantor of the franchisee's obligations, as well as from the franchisee's direct and indirect corporate parents, if applicable.
Benjamin Franklin Plumbing also has broad rights to access a franchisee's business records and systems. Franchisees must provide independent access to the systems they use to operate their franchise, store confidential information, or display the brand's marks and products. This includes maintaining an electronic connection with the company at all times. Benjamin Franklin Plumbing has the right to examine and copy the franchisee's books, records, accounts, and tax returns, as well as the personal tax returns of the owners, and to conduct independent audits of the franchise's books and records at any time, at the company's expense.