When must a Benjamin Franklin Plumbing franchisee designate a commercial bank account for ACH payments?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
For all amounts payable to us and our affiliates, you must use the payment method(s) that we designate from time to time. We currently require payment by Automated Clearing House (ACH), or electronic funds transfer and you must designate an account at a commercial bank of your choice at the time of signing your Franchise Agreement and furnish the bank with authorizations at the time of signing your Franchise Agreement to permit us to make withdrawals from that account.
Source: Item 6 — OTHER FEES (FDD pages 18–27)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, a franchisee must designate a commercial bank account for Automated Clearing House (ACH) payments at the time of signing the Franchise Agreement. The franchisee must also furnish the bank with authorizations at the time of signing the Franchise Agreement to permit Benjamin Franklin Plumbing to make withdrawals from that account. This requirement ensures that Benjamin Franklin Plumbing can collect fees and other payments electronically.
This stipulation is fairly standard in franchising, as it provides a streamlined method for franchisors to receive payments. By mandating ACH payments, Benjamin Franklin Plumbing aims to ensure timely and consistent collection of royalties and other fees. This reduces administrative overhead and minimizes the risk of late or missed payments.
For a prospective Benjamin Franklin Plumbing franchisee, this means being prepared to set up a dedicated business bank account and grant the necessary permissions for ACH withdrawals immediately upon signing the agreement. It is crucial to factor this into the initial setup process and ensure that the designated account has sufficient funds to cover any initial fees or ongoing payments to avoid potential issues such as insufficient funds fees.