What interest rate does Benjamin Franklin Plumbing charge on overdue amounts?
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; or (b) the Key Person is arrested for or formally charged with a serious criminal offense and we take over operation of the Franchised Business pending final disposition of the charges. |
| Step In Fee | Up to $500 per day, plus our costs and overhead | As invoiced | If you are in default under your Franchise Agreement, we have the right to step in and operate the Franchised Business until we determine the default has been cured. We may charge you a fee for these services. |
| Interest | 12% per annum or the maximum rate permitted by applicable law, whichever is less | With payment of overdue amount | Applies only if you do not pay us on time. We calculate interest from the date the payment was due until paid in full. |
| Late Fee | $100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence | With payment of overdue amount | We can charge a late fee to compensate us for our administrative costs incurred in enforcing your obligations to pay us and submit required reports to us. |
| Insufficient Funds Fee | $50 or the amount the bank charges us due to the insufficient funds, whichever is great |
Source: Item 6 — OTHER FEES (FDD pages 18–27)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, if a franchisee does not make payments on time, Benjamin Franklin Plumbing charges interest on the overdue amount. The interest rate is 12% per annum, or the maximum rate permitted by applicable law, whichever is less. This interest is calculated from the date the payment was originally due until the payment is made in full.
In addition to interest, Benjamin Franklin Plumbing also charges late fees for overdue payments. The late fee is $100 for the second occurrence of a payment being more than 30 days past due, $200 for the third occurrence, and $300 for each subsequent occurrence. These late fees are intended to compensate Benjamin Franklin Plumbing for the administrative costs incurred in enforcing the franchisee's payment obligations and the submission of required reports.
Prospective franchisees should be aware of these interest and late fee policies, as they can add to the overall cost of operating a Benjamin Franklin Plumbing franchise if payments are not made on time. It is important to maintain timely payments to avoid these additional charges and maintain a good financial standing with the franchisor. Franchisees should also be aware of any applicable state laws that may limit the interest rate that can be charged on overdue amounts, as Benjamin Franklin Plumbing will adhere to the lower of the two rates.