Can Benjamin Franklin Plumbing require a fee to review a proposed vendor?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
If we require you to use an approved vendor for a particular item, but you wish to purchase the item from a source that we have not approved, you may submit a written request for approval of the vendor, unless it is an item for which we have designated a specific vendor. To obtain approval, proposed vendors must demonstrate the ability to meet our standards and must possess adequate quality controls and capacity to supply your needs promptly and reliably. We 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, we may refuse to disclose product formulations or specifications that we deem to be extremely sensitive. At our request, you must submit samples and other information we require to examine, test and determine whether the proposed vendor meets our specifications and quality standards. We may also require that the proposed vendor allow our representatives to inspect its facilities. We may charge vendors a license fee to use our trademarks or other proprietary property. We may also charge vendors a rebate for participation in our purchasing program.
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.
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, if a franchisee wishes to use a vendor that is not already approved, Benjamin Franklin Plumbing may require the franchisee to pay a fee to cover the costs of reviewing the proposed vendor. This fee is required regardless of whether or not Benjamin Franklin Plumbing ultimately approves the vendor.
This policy allows Benjamin Franklin Plumbing to control the quality and standards of products and services used within its franchise system. By charging a review fee, Benjamin Franklin Plumbing can offset the expenses associated with ensuring that new vendors meet their established criteria. This process includes examining samples, testing products, and potentially inspecting the vendor's facilities.
For a prospective Benjamin Franklin Plumbing franchisee, this means that if they want to use a vendor not already on the approved list, they should be prepared to pay a fee for the review process. This fee could be an added expense, especially if the vendor is not approved. Therefore, franchisees should carefully consider whether using a non-approved vendor is worth the potential cost and effort, considering that Benjamin Franklin Plumbing has no obligation to approve any specific vendor.