Does Benjamin Franklin Plumbing have the right to designate any geographic area for purposes of establishing a Cooperative?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
e not our sales agents and are not authorized to make any statements on our behalf, including any statements related to the financial performance or prospect for success of any franchise.
Joint Marketing Programs and Cooperatives. We have the right to establish: (1) co-marketing programs in which Franchised Businesses and vendors (or other third parties) cross-promote each other's goods and services; (2) joint marketing efforts in which multiple Franchised Businesses contribute to a specific ad or event; and/or (3) local or regional marketing co-operatives ("Cooperatives") that pool funds of Franchised Businesses in a geographic area or with common characteristics on an ongoing basis to jointly promote the Marks and the Franchised Businesses. The amount we require you to spend or contribute to joint marketing programs and/or a Cooperative may be credited to your obligation for Local Marketing or, at our option, to your Brand Fund obligation, or any combination of the two. You are required to participate in each applicable joint marketing program and comply with the rules of the program. As of the date of this disclosure document, we do not require you to participate in or to contribute to an advertising cooperative. If a Cooperative applicable to the Franchised Business is established during the term of this Agreement, you are required to become a member no later than 30 days after the date we approve for the Cooperative to begin operation.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, the company has the authority to designate geographic areas or common characteristics for establishing marketing cooperatives. These cooperatives pool funds from franchisees within a specific region or sharing similar traits to promote the Benjamin Franklin Plumbing brand and their respective businesses.
If Benjamin Franklin Plumbing establishes a cooperative that applies to a franchisee's business, the franchisee is required to join it no later than 30 days after the franchisor approves the cooperative's operational start date. While franchisees are not currently required to participate in or contribute to an advertising cooperative as of the FDD's disclosure date, this policy could change during the term of the Franchise Agreement.
These joint marketing programs and cooperatives are a way for Benjamin Franklin Plumbing to ensure consistent brand messaging and coordinated marketing efforts across different franchise locations. It also allows for economies of scale in advertising and promotion, potentially benefiting franchisees through increased brand awareness and customer reach. However, franchisees should be aware of the potential costs associated with participating in these programs and the rules governing their operation.