Does Benjamin Franklin Plumbing negotiate purchasing arrangements with vendors for franchisees?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
me to time. You may not offer your own gift card, electronic money, or loyalty program for the Franchised Business without our prior written approval. The payment systems and loyalty programs we designate may require you to obtain new hardware, software, equipment and training at your own expense.
- 6.10. Sourcing. We have the right to require that all equipment, technology, inventory, supplies, vehicles, signs, furnishings, fixtures, décor items, retail merchandise, payment systems, and other products and services that you purchase for use or resale in the Franchised Business: (a) meet specifications that we establish from time to time; and/or (b) be purchased only from vendors that we have expressly approved; and/or (c) be purchased only from a single source (which may include us or our affiliates) at the then-current price. To the extent that we establish specifications, require approval of vendors, or designate specific vendors for particular items, we will notify franchisees via the Brand Standards Manuals or otherwise. We and our affiliates will earn revenue and profits from sales that we make directly to you. We may negotiate purchasing arrangements under which vendors agree to make goods or services available to Franchised Businesses on specific terms.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, Benjamin Franklin Plumbing may negotiate purchasing arrangements with vendors for franchisees. Specifically, Benjamin Franklin Plumbing may negotiate terms to make goods or services available to franchisees.
Benjamin Franklin Plumbing franchisees are required to participate in any vendor purchase programs established by the franchisor. To protect the brand's reputation, franchisees must pay vendors on time. Benjamin Franklin Plumbing may receive revenue in the form of rebates, licensing fees, administrative fees, commissions, or other payments from vendors based on franchisee purchases. However, Benjamin Franklin Plumbing is not obligated to remit these funds back to the franchisee, subject to applicable laws and arrangements with the vendors.
Benjamin Franklin Plumbing has the right to require franchisees to purchase equipment, technology, inventory, supplies, vehicles, signs, furnishings, fixtures, décor items, retail merchandise, payment systems, and other products and services that meet the franchisor's specifications. These purchases may be required from vendors that Benjamin Franklin Plumbing has expressly approved or from a single designated source, which could include Benjamin Franklin Plumbing or its affiliates, at the then-current price. Franchisees are responsible for the costs of acquiring, installing, using, maintaining, and upgrading their systems.