What are all the fees a Benjamin Franklin Plumbing franchisee might pay, considering Item 5 and Item 6?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
Franchise Fee
The base initial franchise fee ("Franchise Fee") is $43,000 plus $0.43 for each person above 100,000 in the franchise territory ("Additional Population Fee").
Brand Fund. Franchisees must contribute to a marketing fund for the BENJAMIN FRANKLIN PLUMBING system (the "Brand Fund"). New franchisees are required to contribute to the Brand Fund an amount that we determine, not to exceed 4% of Gross Revenue. As of the date of this disclosure document, the required contribution is a declining percentage of annual Gross Revenue starting at 1.5% of the first $5,000,000 of Gross Revenue in the then-current calendar year (see Item 6). The rate reverts to 1.5% at the start of the next calendar year.
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, franchisees can expect to pay several fees, both initially and on an ongoing basis. The initial fees include a base franchise fee of $43,000, plus an additional population fee of $0.43 for each person above 100,000 in the franchise territory. For franchisees converting an existing plumbing business, a $5,000 conversion down payment is required.
Ongoing fees for Benjamin Franklin Plumbing franchisees primarily involve contributions to the Brand Fund. New franchisees are required to contribute to the Brand Fund an amount that the franchisor determines, not to exceed 4% of Gross Revenue. As of the date of the 2025 disclosure document, the required contribution is a declining percentage of annual Gross Revenue starting at 1.5% of the first $5,000,000 of Gross Revenue in the then-current calendar year. The rate reverts to 1.5% at the start of the next calendar year.
These fees cover various aspects of the franchise operation, from securing the rights to operate under the Benjamin Franklin Plumbing brand to contributing to the system-wide marketing and brand development efforts. Prospective franchisees should carefully consider these fees and factor them into their financial projections to ensure the long-term viability of their business.