What is the Insufficient Funds Fee charged by Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
if you ask us to evaluate a potential vendor; payable whether or not we approve the vendor. Please see Item 8. |
| (1) Type of Fee | Amount | Date Due | Remarks |
|---|---|---|---|
| Management Fee | Up to $500 per day, plus our costs and overhead | Within 30 days after invoice | Payable only if: (a) the Key Person (see Item 15) dies or is incapacitated and we elect to manage the Franchised Business pending transfer of his or her interest; |
Source: Item 6 — OTHER FEES (FDD pages 18–27)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, an insufficient funds fee is charged if an electronic funds transfer payment request is returned due to insufficient funds. The fee is $50 or the amount the bank charges Benjamin Franklin Plumbing due to the insufficient funds, whichever is greater. This fee is payable upon demand.
For a prospective Benjamin Franklin Plumbing franchisee, this means that if a payment made via electronic funds transfer is rejected due to insufficient funds in the franchisee's account, they will be responsible for covering the insufficient funds fee. This fee covers the administrative burden and costs incurred by Benjamin Franklin Plumbing as a result of the failed payment.
Franchisees should ensure they have sufficient funds available when initiating electronic payments to avoid incurring this fee. It is important to note that the fee could exceed $50 if the bank's charge to Benjamin Franklin Plumbing is higher. This is a fairly standard fee in franchising and business in general, as it compensates the recipient for the costs associated with processing a failed payment.