When is the Management Fee due to 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; or (b) the Key Person is arrested for or formally charged with a serious |
Source: Item 6 — OTHER FEES (FDD pages 18–27)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the Management Fee is due within 30 days after the invoice date. This fee, which can be up to $500 per day plus costs and overhead, is only payable under specific circumstances.
The Management Fee is charged if the Key Person, as defined in Item 15 of the FDD, dies or becomes incapacitated, and Benjamin Franklin Plumbing elects to manage the franchised business while the interest is being transferred. It is also applicable if the Key Person is arrested or formally charged with a serious criminal offense, and Benjamin Franklin Plumbing takes over the business's operation pending the resolution of the charges.
This fee covers the costs and overhead that Benjamin Franklin Plumbing incurs while managing the business during these critical periods. It is important for prospective franchisees to understand these conditions, as they represent potential scenarios where Benjamin Franklin Plumbing may step in to manage the business and impose this fee. Franchisees should carefully review Item 15 to fully understand who is designated as the Key Person and the implications for their business.