Can Benjamin Franklin Plumbing's single source for required purchases be the franchisor or its affiliates?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to require that all equipment, technology, inventory, supplies, vehicles, signs, furnishings, fixtures, décor items, retail merchandise, payment systems, and other products and services that you purchase for use or resale in the Franchised Business: (a) meet specifications that we establish from time to time; and/or (b) be purchased only from vendors that we have expressly approved; and/or (c) be purchased only from a single source (which may include us or our affiliates) at the then-current price.
To the extent that we establish specifications, require approval of vendors, or designate specific vendors for particular items, we will notify franchisees via the Brand Standards Manuals or otherwise.
We and our affiliates will earn revenue and profits from sales that we make directly to you.
We may negotiate purchasing arrangements under which vendors agree to make goods or services available to Franchised Businesses on specific terms.
You agree to participate in and abide by the terms of any vendor purchase program established by Franchisor.
To protect the reputation of the Brand, you agree to pay vendors on time.
Subject to applicable law, we may earn money in the form of rebates, licensing fees, administrative fees, commissions, or other payments from vendors based on your purchases.
Subject to applicable laws and our arrangements with the vendors, we have no obligation to remit the funds to you.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, Benjamin Franklin Plumbing has the right to require that equipment, technology, inventory, supplies, vehicles, signs, furnishings, fixtures, décor items, retail merchandise, payment systems, and other products and services be purchased from a single source. This single source may include Benjamin Franklin Plumbing or its affiliates. The franchisee will be required to pay the then-current price for these items.
This means that as a Benjamin Franklin Plumbing franchisee, you may be obligated to purchase certain or all items needed to operate your franchise from Benjamin Franklin Plumbing or its affiliated companies. This could impact your costs and potentially reduce your profit margin if the prices are higher than what you might find elsewhere. However, it could also ensure consistency and quality in the products and services used across all Benjamin Franklin Plumbing franchises.
It is important to note that Benjamin Franklin Plumbing also states that they and their affiliates will earn revenue and profits from sales made directly to the franchisee. Additionally, Benjamin Franklin Plumbing may earn money in the form of rebates, licensing fees, administrative fees, commissions, or other payments from vendors based on the franchisee's purchases. While Benjamin Franklin Plumbing has no obligation to remit these funds to the franchisee, this arrangement highlights the potential financial benefits that Benjamin Franklin Plumbing and its affiliates could receive from these purchasing requirements.