How might fees for Benjamin Franklin Plumbing's Key Account program be charged to franchisees?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliates may from time to time enter into agreements to provide services to customers as part of a national, regional, or Key Account program (sometimes also referred to as "National Accounts"). If you are required to participate in a Key Account program or choose to participate in an optional program, you must pay the fees designated by us or the vendor as part of the program, which may be based on the number of franchisees participating or other factors and may include fees to support our administration of the program. The fees may be charged directly to you or may be paid to us in the form of a rebate from the vendor. We cannot estimate what the cost to you will be of participation in Key Account programs, as it will be dependent on the terms of future contracts with vendors.
Source: Item 6 — OTHER FEES (FDD pages 18–27)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, franchisees may be required to pay fees related to Key Account programs, also referred to as National Accounts, if they are required to participate or choose to participate in an optional program. The amount of these fees will vary based on circumstances and may be determined by factors such as the number of participating franchisees. These fees could also include costs to support Benjamin Franklin Plumbing's administration of the program.
The fees for the Key Account program can be paid either directly to Benjamin Franklin Plumbing or to a vendor. The FDD indicates that the franchisor cannot estimate the cost of participation in Key Account programs, as it depends on the terms of future contracts with vendors. This means a prospective franchisee will not know the exact costs until these agreements are in place.
This fee structure is not uncommon in franchising, where national or key account programs can provide franchisees with access to larger clients or contracts. However, the uncertainty regarding the amount of the fees and the dependence on future contracts introduces a degree of financial risk for franchisees. It is important for potential franchisees to discuss the Key Account program in detail with Benjamin Franklin Plumbing to understand how these programs operate and to assess the potential costs and benefits before investing in the franchise.