Does Benjamin Franklin Plumbing have an obligation to approve any specific vendor?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no obligation to approve any specific vendor or any minimum number of vendors for any item, and any proposed vendor relationship must not jeopardize the availability of any special pricing or other benefits offered by existing vendors based on system-wide purchases. We may require you to pay a fee to cover our costs of reviewing a proposed vendor, which you must pay whether or not we approve the vendor. We generally will give you written notice of approval or disapproval of the proposed vendor within 30 days after receiving your request and completion of evaluation and testing, if required. You may not sell or offer for sale any products or services of the proposed vendor until you receive our written approval.
We have the right to revoke approval of particular vendors if we determine that their products or services no longer meet our standards. Upon receipt of written notice of revocation, you must stop buying from the disapproved vendor. In addition, if we revoke our approval of the products because they fail to meet our standards, you may be required not to use your remaining inventory of those products.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–43)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing has no obligation to approve any specific vendor or any minimum number of vendors for any item. However, if a franchisee wishes to purchase an item from a source that Benjamin Franklin Plumbing has not approved, the franchisee may submit a written request for approval of the vendor, unless it is an item for which Benjamin Franklin Plumbing has designated a specific vendor.
To gain approval, proposed vendors must demonstrate the ability to meet Benjamin Franklin Plumbing's standards and must possess adequate quality controls and capacity to supply the franchisee's needs promptly and reliably. Benjamin Franklin Plumbing will provide the relevant standards and specifications to vendors that wish to become approved vendors, provided that the proposed vendor signs a confidentiality agreement. However, Benjamin Franklin Plumbing may refuse to disclose product formulations or specifications that they deem to be extremely sensitive.
At Benjamin Franklin Plumbing's request, the franchisee must submit samples and other information required to examine, test and determine whether the proposed vendor meets their specifications and quality standards. Benjamin Franklin Plumbing may also require that the proposed vendor allow their representatives to inspect its facilities. Benjamin Franklin Plumbing may charge vendors a license fee to use their trademarks or other proprietary property and may also charge vendors a rebate for participation in their purchasing program. Benjamin Franklin Plumbing may require the franchisee to pay a fee to cover their costs of reviewing a proposed vendor, which the franchisee must pay whether or not they approve the vendor.
Benjamin Franklin Plumbing generally will give written notice of approval or disapproval of the proposed vendor within 30 days after receiving the franchisee's request and completion of evaluation and testing, if required. The franchisee may not sell or offer for sale any products or services of the proposed vendor until they receive Benjamin Franklin Plumbing's written approval. Benjamin Franklin Plumbing has the right to revoke approval of particular vendors if they determine that their products or services no longer meet their standards. Upon receipt of written notice of revocation, the franchisee must stop buying from the disapproved vendor. In addition, if Benjamin Franklin Plumbing revokes its approval of the products because they fail to meet their standards, the franchisee may be required not to use their remaining inventory of those products.