What is the Additional Population Fee for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
osits and pre-paid expenses paid to third parties.
- (2) Calculation of the Franchise Fee is discussed in detail in Item 5. Under the terms of the Conversion Incentive Program, (i) you are required to pay $5,000 of the Franchise Fee and any applicable Additional Population Fee in a lump sum at the time of signing the Franchise Agreement, (ii) the remainder of the Franchise Fee and any applicable Population Fee is deferred for a period of five years under the terms of a Promissory Note that you will sign with us, and (iii) you may be eligible for forgiveness of the remainder of Franchise Fee and any applicable Additional Population Fee up to 100%. In the event you are required to pay the entirety of the Franchise Fee, the low end of the range in the table will be $43,000 assuming you license a single Territory with a population of 100,000 and no Franchise Fee discounts apply, and the high end of the range will be $103,200 assuming you license three Territories with a population of 100,000 and
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–37)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the details of the Additional Population Fee are mentioned within Item 5 and Item 7. Item 7 references that the franchisee may be required to pay an Additional Population Fee. For franchisees participating in the Conversion Incentive Program, any applicable Additional Population Fee is paid in a lump sum of $5,000 at the time of signing the Franchise Agreement. The remaining balance of the Additional Population Fee can be deferred for five years under a Promissory Note.
Item 7 also states that if a franchisee licenses a territory with a population greater than 100,000, they will incur greater pre-opening expenses due to the additional Franchise Fees they will have to pay. The table in Item 7 assumes that the franchisee licenses a single territory with a population of 100,000 and that no Franchise Fee discounts apply.
Prospective franchisees should refer to Item 5 of the FDD for a comprehensive explanation of how the Franchise Fee, including any Additional Population Fee, is calculated. It is important to understand the terms of the Conversion Incentive Program and the potential for forgiveness of the remaining Franchise Fee and Additional Population Fee. Franchisees should also consider the implications of licensing a territory with a population exceeding 100,000, as this will result in higher pre-opening expenses.