What is the minimum insufficient funds fee for Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
tution may require at the time of signing the Promissory Note. You agree to maintain sufficient funds in the account to cover the amounts payable to us. If funds in the account are insufficient to cover the amounts payable at the time we make our periodic electronic funds transfer, the amount of the shortfall will be deemed overdue. Additionally, if the electronic funds transfer payment request is returned due to i
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, if a franchisee's electronic funds transfer payment request is returned due to insufficient funds, the franchisee must pay a fee. This fee is equal to the greater of $50 or the amount the bank charges Benjamin Franklin Plumbing due to the insufficient funds.
This means that at a minimum, a Benjamin Franklin Plumbing franchisee will be charged $50 for each instance of insufficient funds when making a payment via electronic funds transfer. However, if the bank's charge to Benjamin Franklin Plumbing for the insufficient funds is higher than $50, the franchisee will be responsible for paying that higher amount instead.
This policy is fairly standard in franchising and business operations. It is essential for franchisees to maintain sufficient funds in their designated bank account to avoid these fees and potential disruptions in their business operations. Franchisees should also be aware of their bank's potential charges for insufficient funds, as they could be liable for those amounts as well.