What is the high estimate for rent/lease of real estate for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Low Estimate | High Estimate | ||||
| (2) Franchise Fee | $43,000 | $43,000 | Lump sum or financed | On signing of Franchise Agreement | Us |
| Grand | $0 | $6,000 | As arranged | As incurred | Vendors |
| (3) | |||||
| Opening Marketing | |||||
| Rent/Lease | $3,090 | $9,270 | As arranged | As incurred | Landlord |
| (4) | |||||
| of Real Estate |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–37)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the estimated high cost for rent/lease of real estate is $9,270. This estimate is part of the initial investment for establishing a Benjamin Franklin Plumbing franchise. The FDD notes that this cost is 'as arranged' and 'as incurred,' meaning it will depend on the agreement made with the landlord and when the expense is actually incurred.
This figure is based on leasing a location with approximately 2,000 to 3,000 rentable square feet. The document specifies that the estimate includes three months of rent. However, a landlord might also require a security deposit, potentially adding to the initial costs. The actual cost can vary significantly based on the location, the type of property, and the prevailing market conditions for commercial properties.
For a prospective Benjamin Franklin Plumbing franchisee, understanding these variables is crucial. The FDD advises that purchasing real estate instead of leasing could substantially increase the initial investment. Conversely, if a franchisee already leases a space that meets Benjamin Franklin Plumbing's standards, this cost may not apply. If the franchisee already owns suitable real estate, the cost could be $0, although property taxes may still apply.
Therefore, when planning the initial investment, a prospective Benjamin Franklin Plumbing franchisee should carefully evaluate the real estate options, considering location, size, market conditions, and whether to lease or purchase. They should also clarify with the franchisor what standards the space needs to meet to avoid unexpected renovation costs.