Are the amounts paid pursuant to the transfer of a Benjamin Franklin Plumbing franchise refundable?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
, sign our then-current standard form of Franchise Agreement (or the standard form most recently offered to new franchisees) and related documents. The new Franchise Agreement may include new or increased fees and may otherwise differ, without limitation, from the terms of this Agreement.
- (c) Requ
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, amounts paid in connection with a franchise transfer are generally nonrefundable. Specifically, if Benjamin Franklin Plumbing identifies a prospective purchaser for the franchise, the franchisee must pay Benjamin Franklin Plumbing the greater of $15,000, three percent of the total purchase price, or Benjamin Franklin Plumbing's actual costs to identify the purchaser.
This policy means that a Benjamin Franklin Plumbing franchisee who is considering selling their franchise should be aware that the fees paid to the franchisor to facilitate the transfer are nonrefundable, regardless of whether the transfer is ultimately completed. This could represent a significant cost for franchisees, especially if the sale does not proceed as planned.
This nonrefundable policy is fairly typical in the franchise industry, as transfer fees are intended to compensate the franchisor for their time and expenses in reviewing and approving the transfer. However, prospective franchisees should carefully consider this policy and factor it into their decision-making process, as it could impact their ability to recoup their investment in the franchise.