What is the maximum Management Fee that Benjamin Franklin Plumbing can charge per day?
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 seriou |
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 company can charge a Management Fee of up to $500 per day, plus their costs and overhead. This fee is invoiced and due within 30 days. However, this fee is only payable under specific circumstances.
Benjamin Franklin Plumbing can only charge this Management Fee 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. Alternatively, the fee is applicable if the Key Person is arrested or formally charged with a serious criminal offense, leading Benjamin Franklin Plumbing to take over the business's operation until the charges are resolved.
This means that a franchisee will not normally be charged a Management Fee. It is only in extreme circumstances where the franchisee is unable to run the business that this fee would come into play. It is important to note that in addition to the $500 per day, Benjamin Franklin Plumbing can also charge for their costs and overhead, which could potentially add a significant amount to the daily fee.