What is the 'Account' in reference to payments for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 7.5. Service Deficiency Reimbursements. If a customer of the Franchised Business complains to us that your services were deficient and we determine, after discussion with you, that (i) there is merit to the customer's complaint, (ii) the complaint is the result of a contract dispute between you and the customer, and/or (iii) there has been a violation of local, state, or federal law, then in addition to the other remedies available to us under this Agreement, we reserve the right to perform or cause to be performed services to the customer's satisfaction or to reimburse the customer for any money the customer may have paid for the deficient services. You are required to promptly reimburse us for any costs we incur to perform the services or to reimburse the customer, upon receipt of an invoice from us.
- 7.6. Payment Method. For all amounts payable to us, you ar
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the 'Account' for a Benjamin Franklin Plumbing franchise refers to the franchisee's bank account from which payments to the franchisor are electronically transferred. Specifically, the franchisee agrees to authorize Automated Clearing House (ACH) or other electronic funds transfers from this account to cover amounts payable to Benjamin Franklin Plumbing.
It is the franchisee's responsibility to ensure sufficient funds are available in the designated account to cover these payments. If the funds are insufficient at the time of the electronic transfer, the shortfall is considered overdue. Additionally, Benjamin Franklin Plumbing will charge the franchisee a fee equal to the greater of $50 or the amount the bank charges the franchisor due to the insufficient funds if a payment request is returned.
This payment method ensures that Benjamin Franklin Plumbing can efficiently collect royalty fees, brand fund contributions, and other charges calculated based on gross revenue. If a franchisee's gross revenue report is not received when due, Benjamin Franklin Plumbing has the right to estimate gross revenue and draft the estimated amount due from the franchisee's bank account. This clause protects the franchisor from delays in receiving payments and ensures a steady cash flow.
If Benjamin Franklin Plumbing permits payment via credit card, the franchisee must reimburse the franchisor for any charges incurred as a result of using this payment method, subject to applicable law. This condition is fairly standard in franchising, as franchisors typically prefer electronic funds transfers due to their lower processing costs and greater reliability compared to credit card payments.