If Benjamin Franklin Plumbing identifies the prospective purchaser, what additional fee is required?
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 Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, if the company identifies the prospective purchaser for a franchise transfer, the franchisee must pay an additional fee. This fee is the greater of three options: $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 franchisee looking to transfer their franchise may incur significant costs if they rely on Benjamin Franklin Plumbing to find a buyer. The fee is designed to compensate Benjamin Franklin Plumbing for their efforts in identifying a suitable purchaser and to ensure they are adequately reimbursed for their resources.
It is important to note that any amounts paid under this section are nonrefundable, regardless of whether the transfer is completed. Therefore, franchisees should carefully consider the potential costs and benefits before requesting Benjamin Franklin Plumbing's assistance in finding a buyer. Franchisees should also clarify with Benjamin Franklin Plumbing what constitutes 'actual costs' to avoid any unexpected expenses.