What is the maximum Step In 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 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 |
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 Step In Fee of up to $500 per day, in addition to their costs and overhead. This fee is charged if a franchisee defaults on their Franchise Agreement, which allows Benjamin Franklin Plumbing the right to step in and operate the franchise until the default is resolved. The Step In Fee will be invoiced to the franchisee.
This means that if a Benjamin Franklin Plumbing franchisee fails to meet the obligations outlined in their agreement, the franchisor can take over operations and charge a daily fee for managing the business during the period of default. Besides the $500 per day, the franchisee is also responsible for covering Benjamin Franklin Plumbing's costs and overhead during this time, which could potentially add a significant financial burden.
It is important for prospective franchisees to understand the conditions under which Benjamin Franklin Plumbing can step in and the potential costs associated with this intervention. Reviewing the Franchise Agreement carefully to understand what constitutes a default is crucial. Franchisees should also inquire about what specific costs and overhead expenses they might incur in addition to the $500 daily fee.