How is the price determined for the inventory and supplies that Benjamin Franklin Plumbing may purchase from the franchisee?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.1.2 At our request, sell to us such of the furnishings, fixtures, vehicles, equipment, and signs of the Franchised Business as we may designate, at fair market value, and such of the inventory and supplies on hand as we may designate, at fair market wholesale value.
If the parties cannot agree on the price of any such items within thirty (30) days, we will appoint an independent appraiser, and the appraiser's determination will be final.
Franchisor and Franchisee will each pay one-half of the appraiser's fees and costs.
We will have thirty (30) days after receipt of the appraiser's determination to decide whether to proceed with the purchase.
If we exercise our option to purchase any items, we will have the right to set off any amount due to us or our affiliate from you against any payment for the items.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, if the franchise agreement is terminated or expires, Benjamin Franklin Plumbing has the option to purchase the franchisee's inventory and supplies. The price for these items will be the fair market wholesale value.
If Benjamin Franklin Plumbing and the franchisee cannot agree on a price within 30 days, an independent appraiser will be appointed to determine the price. Both the franchisee and Benjamin Franklin Plumbing will each cover half of the appraiser's fees and costs.
Benjamin Franklin Plumbing has 30 days after receiving the appraiser's determination to decide whether to proceed with the purchase. If Benjamin Franklin Plumbing chooses to buy the items, they can deduct any amounts owed to them or their affiliates from the payment to the franchisee.