What is the minimum Insufficient Funds Fee that Benjamin Franklin Plumbing charges?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Type of Fee | Amount | Date Due | Remarks |
|---|---|---|---|
| Insufficient Funds Fee | $50 or the amount the bank charges us due to the insufficient funds, whichever is greater. | Upon demand | Payable if an electronic funds transfer payment request is returned due to insufficient funds. |
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 insufficient funds fee is structured as a minimum of $50 or the amount the bank charges Benjamin Franklin Plumbing due to the insufficient funds, whichever is greater. This fee is due upon demand and is payable if an electronic funds transfer payment request is returned due to insufficient funds.
For a prospective Benjamin Franklin Plumbing franchisee, this means that if a payment made via electronic funds transfer is rejected because of insufficient funds in their account, they will be charged a fee. The fee will be at least $50, but could be higher if Benjamin Franklin Plumbing's bank charges them more than $50 for the returned payment.
This type of fee is relatively standard in franchising and business operations. It is designed to cover the administrative costs and potential penalties that the franchisor incurs when a payment is not honored by the franchisee's bank. Franchisees should ensure they have sufficient funds available when making payments to avoid incurring this fee.