Franklin Wealth Management, LLC (“IAP”) is a registered investment adviser based in Hixson, Tennessee. We
are organized as a limited liability company under the laws of the State of Tennessee and formed in 2010.
The firm is primary owned by Franklin Wealth Management, LLC which also serves as a doing business as
name. Franklin Wealth Management, LLC is owned by Joe D. Franklin, who serves as the CEO, President and
Chief Compliance Officer of Franklin Wealth Management, LLC.
The firm provides innovative advice for business-minded professionals, with a focus on inter-generational
planning and out of the box thinking with regard to saving taxes, investing and ensuring clients stay financially
fit. Services consist of portfolio management and financial planning and consulting services. Clients may retain
Franklin Wealth Management, to provide portfolio management and financial planning or may engage us to
provide either service exclusive of the other.
Asset Management
We provide portfolio management services based on static and dynamic model portfolios. Static model
strategies are based on current and past performance of different sectors and dynamic model strategies are
generally more aggressive in nature based on current and expected future performance of asset classes.
If you retain our firm for portfolio management services, we will meet with you to determine your investment
objectives, risk tolerance, and other relevant information (the "suitability information") at the beginning of our
advisory relationship. We will use the suitability information we gather to develop a strategy that enables our
firm to construct an investment portfolio for you which will be based on a model portfolio. Once we select a
model portfolio for you, we will monitor your portfolio's performance on an ongoing basis and will rebalance
the portfolio as required by changes in market conditions and in your financial circumstances.
We offer discretionary and non-discretionary authority to manage your account. Written discretionary
authorization will allow our firm to determine the specific securities, and the amount of securities, to be
purchased or sold for your account without your approval prior to each transaction. Discretionary authority is
typically granted by the investment advisory agreement you sign with our firm or trading authorization forms. If
you enter into non-discretionary arrangements with our firm, we must obtain your approval prior to executing
any transactions on behalf of your account.
Franklin Wealth Management Wrap Fee Program
Assets managed in a wrap fee program are identical to a non-wrap fee program except for the fee
structure. Franklin Wealth Management acts as the sponsor and portfolio manager. The cost to manage
an account, advisory fees and transaction expenses are “wrapped” into a single fee. Please see Appendix
1 –Wrap Fee Program Brochure, which is included as a supplement to this Disclosure Brochure for
additional details. There are no differences between how a wrap fee account and a non-wrap fee account
are managed.
Financial Planning and Consulting Services
Franklin Wealth Management offers broad-based, modular, and consultative financial planning services. Our
financial planning services typically involve providing a variety of advisory services regarding the management
of your financial resources based upon an analysis of your individual needs. Financial planning services may
include but may not be limited to:
• investment planning, • estate planning • tax planning
• asset protection planning • retirement planning • wealth planning
If you retain our firm for financial planning services, we will meet with you to gather information about your
financial circumstances and objectives. Once we review and analyze the information you provide to our firm,
we will deliver a written plan to you, designed to help you achieve your stated financial goals and objectives.
Financial plans are based on your financial situation at the time we present the plan to you, and on the financial
information you provide to our firm. You should also be aware that our financial plans may contain certain
assumptions with respect to interest and inflation rates, along with past trends and performance of the market
and economy. Past performance is in no way an indication of future performance. You must promptly notify our
firm if your financial situation, goals, objectives, or needs change.
For consultative planning, where we advise you on specific financial related topics, fees may be due and
payable upon completion of services rendered and may be charged on a negotiable hourly or fixed fee basis. In
certain circumstances other fee payment arrangements may be made, which will be determined on a client by
client basis.
You may terminate the financial planning agreement with written notice within 5 days of the signing of the
agreement, without penalty. Thereafter, you may terminate the financial planning agreement upon 30 day's
written notice to our firm. You will incur a pro rata charge for services rendered prior to the termination of the
agreement. If you have pre- paid fees that we have not yet earned, you will receive a prorated refund of those
fees.
In some cases we may waive or offset the financial should you choose to implement the advice through our
portfolio management services as described above or by purchasing insurance or a commissioned product
though associated persons acting as insurance agents or as registered representatives of LPL. We reserve the
right to determine whether the financial planning fees will be waived or offset by the fees earned in the
implementation process. However, you are under no obligation to act on our financial planning
recommendations. Should you choose to act on any of our recommendations, you are not obligated to
implement the financial plan through portfolio management services and are free to act on our
recommendations by placing securities transactions with any brokerage firm of your choice.
You may terminate the client agreement with written notice within 5 days of the signing of the agreement,
without penalty. Thereafter, you may terminate the client agreement upon 30 days written notice to our firm.
You will incur a pro rata charge for services rendered prior to the termination of the agreement, which means
you will incur advisory fees only in proportion to the number of days in the quarter for which you are a client. If
you have pre-paid advisory fees that we have not yet earned, you will receive a prorated refund of those fees.
Financial Institution Consulting Services
Franklin Wealth Management provides investment consulting services to certain broker/dealers’ customers
(“Brokerage Customers”) who provide written consent requesting to receive the firm’s consulting services.
Brokerage Customers have entered into a written advisory agreement with Franklin Wealth Management.
Wealth Management Reporting
We offer an online wealth management reporting service whereby you are able to view all your financial and
account information in a consolidated reporting format.
We charge the following fees for such service which is based upon the value of assets reported on as follows:
Asset Value Annual Fee
Up to $500,000 0.10%
$501,000 to $1,000,000 0.05%
$1,000,001 to $5,000,000 0.05%
$5,000,001 to $10,000,000 0.05%
Above $10,000,000 Negotiable*
* There is a minimum $75 charge for this service.
Hourly Consulting Services
Franklin Wealth Management offers consulting services on an hourly basis. Hourly consulting and financial
planning offer similar services but differ in depth and scope. Financial planning is generally more
comprehensive and takes into account a client’s entire financial situation whereas hourly consulting tends to be
more focused on a particular financial objective or need. The hourly consulting engagement terminates upon
final consultation with the client.
Retirement Plan Rollovers
An employee generally has four (4) options for their retirement plan when they leave an employer:
1. Leave the money in his/her former employer’s plan, if permitted
2. Rollover the assets to his/her new employer’s plan if one is available and permitted
3. Rollover to an Individual Retirement Account (IRA), or
4. Cash out the account value, which has significant tax considerations
Each of these options has advantages and disadvantages and before making a change we encourage you to
speak with your CPA and/or tax attorney. If you are considering rolling over your retirement funds to an IRA
for us to manage here are a few points to consider
before you do so:
• Determine whether the investment options in your employer's retirement plan address your needs or
whether you might want to consider other types of investments.
• Employer retirement plans generally have a more limited investment menu than IRAs.
• Employer retirement plans may have unique investment options not available to the public such as
employer securities, or previously closed funds.
• Your current plan may have lower fees than our fees.
Franklin Wealth Management provides educational services to retirement plan participants with assets that could
potentially be rolled-over to an IRA advisory account. Education is based on a particular Client’s financial
circumstances and best interests. Again, Advisor has an incentive to recommend such a rollover based on the
compensation received, which is mitigated by the fiduciary duty to act in a Client’s best interest and acting
accordingly.
If you elect to roll the assets to an IRA that is subject to our management, we will charge you an asset-based fee
as set forth in the agreement you executed with our firm. This practice presents a conflict of interest because
Investment Advisor Representatives have an incentive to recommend a rollover to you for the purpose of
generating fee-based compensation rather than solely based on your needs. You are under no obligation,
contractually or otherwise, to complete the rollover. Moreover, if you do complete the rollover, you are under
no obligation to have the assets in an IRA managed by our firm.
Many employers permit former employees to keep their retirement assets in their company plan. Also, current
employees can sometimes move assets out of their company plan before they retire or change jobs. In
determining whether to complete the rollover to an IRA, and to the extent the following options are available,
you should consider the costs and benefits of each. An employee will typically be investing only in mutual
funds, you should understand the cost structure of the share classes, available in your employer's retirement plan
and how the costs of those share classes compare with those available in an IRA. Clients should understand the
various products and services they might take advantage of at an IRA provider and the potential costs of those
products and services.
• Our strategy may have higher risk than the option(s) provided to you in your plan.
• Your current plan may also offer financial advice.
• If you keep your assets titled in a 401k or retirement account, participants could potentially delay their
required minimum distribution beyond age.
• A 401(k) may offer more liability protection than a rollover IRA; each state may vary.
• Participants may be able to take out a loan on your 401k, but not from an IRA.
• IRA assets can be accessed any time; however, distributions are subject to ordinary income tax and may
also be subject to a 10% early distribution penalty unless they qualify for an exception such as disability,
higher education expenses or the purchase of a home.
• If company stock is owned in a plan, participants may be able to liquidate those shares at a lower capital
gains tax rate.
• Plans may allow Advisor to be hired as the manager and keep the assets titled in the plan name.
Generally, federal law protects assets in qualified plans from creditors. Since 2005, IRA assets have been
generally protected from creditors in bankruptcies. However, there can be some exceptions to the general rules
so you should consult with an attorney if you are concerned about protecting your retirement plan assets from
creditors.
It is important to understand the differences between these types of accounts and to decide whether a rollover is
the best option. Prior to proceeding, if you have questions contact your Investment Adviser Representative, or
call our main number as listed on the cover page of this brochure.
When Advisor provides investment advice to you regarding your retirement plan account or individual
retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income
Security Act and/or the Internal Revenue Code, as applicable, which are laws governing retirement accounts.
The way we make money creates some conflicts with your interests, so we operate under a special rule that
requires us to act in your best interest and not put our interest ahead of yours. Under this sp ecial rule’s
provisions, we must:
• Meet a professional standard of care when making investment recommendations (give prudent advice);
• Never put our financial interests ahead of yours when making recommendations (give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
Types of Investments
We primarily offer advice on equity securities, warrants, corporate debt securities, commercial paper,
certificates of deposit, municipal securities, investment company securities, U.S. Government securities, options
contracts on securities, interests in partnerships investing in real estate and oil and gas, managed futures, hedge
funds and other alternative investments. Additionally, we may advise you on any type of investment that we
deem appropriate based on your stated goals and objectives. We may also provide advice on any type of
investment held in your portfolio at the inception of our advisory relationship. You may request that we refrain
from investing in particular securities or certain types of securities. You must provide these restrictions to our
firm in writing.
Educational Seminars and Speaking Engagements
Franklin Wealth Management strongly believes in investor education. As such, Franklin Wealth Management
hosts educational workshops and seminars to clients and prospective clients. Franklin Wealth Management may
or may not charge for attending an educational workshop or seminar, depending on the volume and costs of
materials provided to the attendees, length of the session, cost of venue, etc. If Franklin Wealth Management
does charge for attendance, the charge will not exceed $100 per attendee.
Assets Under Management
As of March 30, 2024, we manage approximately $192,100,000 of client assets on a discretionary basis and
approximately $6,700,000 of client assets on a non-discretionary basis.
Conflicts of Interest
Investment advisor representatives must fully disclose all material facts concerning any conflict and should
avoid even the appearance of a conflict of interest and abide by honest and ethical business practices.
• Investment advisor representatives must not induce trading in a client's account that is excessive in
size or frequency in view of the financial resources and character of the account. Investment advisor
representatives must make recommendations with reasonable grounds to believe that they are
appropriate based on the information furnished by the client.
• Investment advisor representatives may not borrow money or securities from or lend money or
securities to a client.
• Investment advisor representatives must not place an order for the purchase or sale of a security if the
security is not registered, or the security or transaction is not exempt from registration in the specific
state.
• Product sponsors may pay for or reimburse Franklin Wealth Management for the costs associated with
education or training events.
• The code of ethics permits employees and investment advisor representatives or related persons to
invest for their own personal accounts in the same or different securities that an investment advisor
representative may purchase for clients in program accounts.
In offering financial planning, a conflict exists between the interests of the investment advisor and the
interests of the client. The client is under no obligation to act upon the investment advisor's recommendation,
and, if the client elects to act on any of the recommendations, the client is under no obligation to affect the
transaction through the investment advisor. Such conflicts and risk of misconduct are mitigated by an
investment advisor representative’s fiduciary duty to act in the best interests of its clients. The firm’s Chief
Compliance Officer, Joe Franklin, is available to address any questions regarding conflicts of interest.