Are the separate financial statements of Benjamin Franklin Plumbing included in the FDD?
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 Benjamin Franklin Plumbing Franchise Disclosure Document, the separate financial statements for Benjamin Franklin Plumbing are not included. Instead, the FDD includes the audited consolidated financial statements of AB Assetco LLC, the parent company, for the years ending December 31, 2024 and 2023, and for each of the three years in the period ended December 31, 2024. AB Assetco also provides a guarantee of performance of Benjamin Franklin Plumbing's obligations. Should Benjamin Franklin Plumbing fail to meet its obligations to franchisees, AB Assetco guarantees to assume those duties.
Additionally, the FDD includes 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, as AB Inc. is not a party to the Franchise Agreement with franchisees and does not guarantee Benjamin Franklin Plumbing's obligations.
Prospective franchisees should carefully review the financial statements of AB Assetco LLC and AB Inc. to understand the financial health and stability of Benjamin Franklin Plumbing's parent companies. While the separate financial statements of Benjamin Franklin Plumbing are not included, the guarantee from AB Assetco provides some assurance. Franchisees may want to seek professional financial advice to fully assess the implications of this financial structure.