Is Benjamin Franklin Plumbing required to have the Brand Fund independently audited?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no obligation to have the Brand Fund independently audited. We will, however, prepare an annual unaudited statement of contributions to and expenditures of the Brand Fund. You can obtain a copy by making a written request. Any expenditures for independent accounting services in connection with the annual statement will be charged to the Brand Fund.
For the calendar year ended December 31, 2024, 42% of Brand Fund expenditures were for National Advertising & Programs, 11% of expenditures were for Marketing Support, 4% of expenditures were for Public Relations, 24% of expenditures were for Creative Production and 19% of expenditures were for Other. None of the amounts in the Brand Fund are used for marketing that is principally a solicitation for the sale of franchises.
The Brand Fund is not a trust and does not give us a fiduciary obligation. Other than our express obligations in the Franchise Agreement, we assume no liability with respect to maintenance, direction, or administration of the Brand Fund. We have the right to incorporate, replace, change or dissolve the Brand Fund. If we decide to dissolve the Brand Fund, contributions to the Brand Fund will stop, but the Brand Fund will continue in existence until remaining funds have been spent.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing is not obligated to have the Brand Fund independently audited. However, Benjamin Franklin Plumbing will prepare an annual unaudited statement of contributions to, and expenditures of, the Brand Fund. A franchisee can obtain a copy of this statement by making a written request. Any expenditures for independent accounting services in connection with the annual statement will be charged to the Brand Fund.
For the year ending December 31, 2024, the Brand Fund expenditures included 42% for National Advertising & Programs, 11% for Marketing Support, 4% for Public Relations, 24% for Creative Production, and 19% for Other. The FDD specifies that none of the amounts in the Brand Fund 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 does not create a fiduciary obligation for Benjamin Franklin Plumbing. The company assumes no liability regarding the maintenance, direction, or administration of the Brand Fund, beyond its express obligations in the Franchise Agreement. Benjamin Franklin Plumbing has the right to incorporate, replace, change, or dissolve the Brand Fund. If the Brand Fund is dissolved, contributions will cease, but the fund will continue to exist until the remaining funds are spent.