What is the Minimum Royalty Fee amount for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Gross Revenue or $1,500 per month (the “Minimum Royalty”), whichever is greater. | Semi- monthly, unless we designate a different period | See Note 2 for the definition of “Gross Revenue.” See Note 3 for an explanation of the Minimum Royalty and the Royalty Fee payment schedule. |
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 royalty fee is 6% of Gross Revenue or a minimum of $1,500 per month, whichever is greater. This minimum royalty fee is a common practice in franchising, ensuring that the franchisor receives a baseline income to support the franchise system. The royalty fee is due semi-monthly unless Benjamin Franklin Plumbing designates a different period.
For new Benjamin Franklin Plumbing franchises or existing franchisees licensing additional territories, the minimum royalty commences one year after the business opens or the opening deadline specified in the Franchise Agreement, whichever is earlier. The FDD also specifies that the minimum royalty may be implemented as $750 per semi-monthly period or another payment schedule designated by Benjamin Franklin Plumbing.
If a franchisee acquires the Benjamin Franklin Plumbing business through a transfer, the minimum royalty is calculated using the average royalty fees paid by the previous operator over the prior 12 months. If this calculation results in a minimum royalty below $1,500, that calculated amount will be the minimum royalty for the first 12 months following the transfer. After this initial 12-month period, the minimum royalty increases to $1,500 for the remainder of the franchise term. This tiered approach provides some financial relief to franchisees taking over an existing business, allowing them time to grow the business before meeting the standard minimum royalty.
Gross Revenue, for royalty calculation purposes, includes all revenue from the sale of products and services and all other income related to the franchised business, whether in cash, credit, or other forms of value. It also includes amounts billed to insurance or government programs. Gross Revenue is not reduced by fees or commissions paid to third parties for customer referrals but does exclude sales taxes or other taxes collected from customers and paid to the appropriate taxing authority.