What sections of the Benjamin Franklin Plumbing Franchise Agreement address advertising obligations for franchisees?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
see fit. We may offer to provide, or may require that you have, a website for your Franchised Business (which may be structured as a separate page of a website supported by the Brand Fund).
Pricing and Promotional Activities. To the extent permitted by applicable law where your Franchised Business is located, we have the right to establish maximum and/or minimum prices that you must follow for goods and services sold by the Franchised Business. You must participate in and comply with the terms of special promotional activities that we prescribe for Franchised Businesses generally or in specific geographic areas or for specific types of venues. These activities may include special offers, limited time offers, and pricing promotions. You must bear your own costs of participating in these activities and must display promotional signs and materials and otherwise participate in the manner we request.
Franchisee Leadership Team. As of the date of this disclosure document, we have a Franchisee Leadership Team ("FLT") that provides us with input on advertising policies, plans, programs, strategies, and other matters that impact the BENJAMIN FRANKLIN PLUMBING, Mister Sparky, and One Hour Heating & Air Conditioning franchise systems. The FLT serves in an advisory capacity only; we retain final authority on all decisions. The FLT is composed of a total of ten members (franchisees) from BENJAMIN FRANKLIN PLUMBING, Mister Sparky, and One Hour Heating & Air Conditioning. Currently, eight
franchisees on the FLT are selected based on a vote by then-current franchisees of the three brands, and the other two franchisee members are appointed by our President. Each member serves a four-year term. Under the current FLT bylaws, only franchisees in good standing may serve on the FLT. We reserve the right to alter the bylaws and the FLT program at any time at our discretion. The address for the FLT is our principal office at 7120 Samuel Morse Drive, Suite 300, Columbia, Maryland 21046. The FLT does not maintain a separate telephone number, email address, or website. The FLT usually meets four times each year, twice in-person and twice through teleconference. We pay the FLT's expenses for approved meetings. We have the power to form, change or dissolve the FLT at any time.
Technology Requirements
We have the right to specify the point-of-sale (POS) system, customer relationship management (CRM) system, back-office system, software applications, audio/visual equipment, security systems, electronic payment devices, and other hardware, software, and network connectivity for the Franchised Business. You must sign any standard license agreement or user agreement that may be required to use a system that we specify. You must use the required systems for service calls, managing inventory, reporting Gross Revenue and other information, training personnel, and other functions as we specify from time to time. You must ensure that your employees are adequately trained to use the systems and that they follow applicable policies.
As of the date of this disclosure document, we require the following:
- You must have or purchase a personal computer, smart phone, and/or tablet capable of running the latest version of Microsoft Windows or iOS operating system. Your computer must be equipped to support Microsoft Office Professional suite and latest version of Microsoft's web browser or Safari browser software. We estimate the cost for these items will range from $800 to $3,000.
- You must have access to the internet, communication networks and telephone system with adequate speeds to connect to our systems and conduct daily business activities. We estimate this cost to be in the range of $300 to $1,500 per year, depending on your providers and the number of services you choose to purchase.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 43–44)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, Item 11, titled "Franchisor's Assistance, Advertising, Computer Systems, and Training," outlines several advertising obligations for franchisees. This item details the franchisor's right to direct advertising, marketing, and public relations activities to promote the brand. It also mentions the Franchisee Leadership Team (FLT), which provides input on advertising policies, plans, programs, and strategies, although the franchisor retains final authority on all decisions.
Specifically, Item 11 states that Benjamin Franklin Plumbing franchisees must participate in and comply with the terms of special promotional activities prescribed by the franchisor, including displaying promotional signs and materials as requested. Franchisees are responsible for bearing their own costs of participating in these activities. Furthermore, franchisees are required to contribute to a marketing fund known as the "Brand Fund," with new franchisees contributing up to 4% of Gross Revenue, although the current required contribution is a declining percentage starting at 1.5% of the first $5,000,000 of Gross Revenue in a calendar year.
The Brand Fund is used to support the general development and recognition of the Benjamin Franklin Plumbing brand. The franchisor or its affiliate administers the Brand Fund and has the right to direct all advertising, marketing, and public relations activities, with final discretion over strategic direction, creative concepts, materials, endorsements, geographic market, and media allocation. This means that while franchisees contribute financially and may offer input through the FLT, the franchisor ultimately controls how the advertising and marketing efforts are executed.
Prospective Benjamin Franklin Plumbing franchisees should carefully review Item 11 of the Franchise Disclosure Document and the Franchise Agreement to fully understand their advertising obligations, including participation requirements, cost responsibilities, and contributions to the Brand Fund. They should also inquire about the specific terms and conditions of the Brand Fund, including how the funds are managed and allocated, to ensure they are comfortable with the franchisor's advertising and marketing strategies.