What is the purpose of the Brand Fund for Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
chisees under previous forms of Franchise Agreement may contribute at other rates. Company-Owned Outlets will contribute to the Brand Fund on the same basis as new franchisees.
The purpose of the Brand Fund is to support general development and recognition of the BENJAMIN FRANKLIN PLUMBING brand. We will have the right to direct all advertising, marketing, public relations, and other activities to promote, develop and enhance the brand, with final discretion over strategic direction, creative concepts, materials, endorsements, geographic market, and media allocation. We or our affiliate administer the Brand Fund. We may use the Brand Fund to pay costs and expenses as we determine in our sole discretion, including but not limited to: production of video, audio, written, online and mobile marketing materials; purchasing promotional items; sponsorship of sporting, charitable, or similar events; design, establishment, and maintenance of websites, social media, mobile applications and other electronic marketing; implementation of advertising programs, in-store promotions, direct mail, and media advertising; marketing and sales training; employing advertising agencies; conducting public relations, consumer research, product development, product testing, and test marketing programs; developing and implementing trade dress and design prototypes; fulfillment charges; salaries and expenses of our and our affiliates' employees working for or on behalf of the Brand Fund; fees of accounting firms, design firms, public relations firms, consultants and ad agencies; legal fees for advertising pre-clearance, defense of false advertising claims, and defense of any claims made regarding our administration of the Brand Fund; other administrative costs and overhead incurred in activities related to the administration and activities of the Brand Fund; and interest on any monies borrowed by the Brand Fund.
Our marketing and advertising department will prepare advertising, marketing, and related materials and programs. We will make available to you any creative materials financed by the Brand Fund. If you request specific materials to be produced or customized for you, then once you approve the requested materials, you must pay or reimburse us for any costs to reproduce the materials and/or to customize the materials for your use.
We may develop advertising and promotional materials and displays for the solicitation of franchisees for the Brand. You must display such materials and displays as we require from time to time. Our consumer website and other online activities supported by the Brand Fund may also include information about our franchise opportunity.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the Brand Fund exists to support the overall development and recognition of the Benjamin Franklin Plumbing brand. The franchisor has the authority to direct all advertising, marketing, public relations, and other activities to promote and enhance the brand, including making final decisions on strategic direction, creative concepts, materials, endorsements, geographic markets, and media allocation.
Benjamin Franklin Plumbing or its affiliate administers the Brand Fund and can use it to cover a wide array of costs and expenses at their discretion. These expenses include the production of marketing materials (video, audio, written, online, and mobile), purchasing promotional items, sponsoring events, maintaining websites and social media, implementing advertising programs, conducting market research, and covering salaries and fees related to the Brand Fund's administration.
For the calendar year ended December 31, 2024, the largest portion of Brand Fund expenditures (42%) was allocated to National Advertising & Programs. Other significant allocations included Marketing Support (11%), Public Relations (4%), and Creative Production (24%). The remaining 19% was categorized as Other. The FDD specifies that none of the Brand Fund amounts are used for marketing that is principally a solicitation for the sale of franchises.
It is important to note that the Brand Fund is not a trust, and Benjamin Franklin Plumbing does not have a fiduciary obligation related to it. While they provide an annual unaudited statement of contributions to and expenditures of the Brand Fund, they are not obligated to have the fund independently audited. Franchisees do not have the right to reduce or withhold contributions based on any alleged lack of benefits to their specific franchise. Benjamin Franklin Plumbing retains the right to change or dissolve the Brand Fund.