Are Benjamin Franklin Plumbing's separate financial statements included in the disclosure document?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit I to this disclosure document contains the following:
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- The audited consolidated financial statements of AB Assetco LLC ("AB Assetco"), our parent company, (i) as of December 31, 2024 and 2023, and (ii) for each of the three years in the period ended December 31, 2024.
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- A Guarantee of Performance of our obligations by AB Assetco. Our separate financial statements are not included in this disclosure document. Should we fail to fulfill our duties and obligations to our franchisees under their Franchise Agreements, AB Assetco absolutely and unconditionally guarantees to assume those duties and obligations.
As described in Item 1, AB Inc. provides support and services to BENJAMIN FRANKLIN PLUMBING franchisees under a management agreement with us. AB Inc. was formerly known as Villa BidCo, Inc. until the company changed its name on May 17, 2021. We have included in Exhibit I the audited consolidated financial statements of AB Inc. and subsidiaries which comprise the consolidated balance sheets as of December 31, 2024, and December 31, 2023 and the related consolidated statements of comprehensive loss, of changes in stockholder's equity and of cash flows for the three years then ended December 31, 2024. These financial statements are included for disclosure purposes only; AB Inc. is not a party to the Franchise Agreement we sign with franchisees, nor does it guarantee our obligations under the Franchise Agreement we sign with franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 FDD, the separate financial statements for Benjamin Franklin Plumbing are not included in the disclosure document. Instead, the audited consolidated financial statements of AB Assetco, the parent company of Benjamin Franklin Plumbing, are included. These statements cover the financial years ending December 31, 2024 and 2023, and each of the three years in the period ended December 31, 2024. AB Assetco also provides a guarantee of performance, ensuring that it will assume the duties and obligations to franchisees should Benjamin Franklin Plumbing fail to do so.
Additionally, the FDD includes the audited consolidated financial statements of AB Inc. and its subsidiaries, with consolidated balance sheets as of December 31, 2024, and December 31, 2023, and related statements of comprehensive loss, changes in stockholder's equity, and cash flows for the three years then ended December 31, 2024. These statements are included for informational purposes, but AB Inc. is not a party to the Franchise Agreement and does not guarantee Benjamin Franklin Plumbing's obligations to franchisees.
For a prospective franchisee, this means that the financial stability and performance of the parent company, AB Assetco, is crucial. The guarantee from AB Assetco offers some security, as it promises to cover Benjamin Franklin Plumbing's obligations if the company falters. However, it's important to carefully review the financial statements of AB Assetco to assess its ability to fulfill this guarantee. The inclusion of AB Inc.'s financial statements provides additional context, but these statements do not represent a direct guarantee or obligation related to the franchise agreement.