What are the payment deadlines for the semi-monthly royalty fees for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
on or exclusion of certain revenue from Gross Revenue as circumstances, business practices, and technology change.
(3) For a Start-Up Franchise, or if you are an existing Franchisee licensing one or more additional Territories, the Minimum Royalty commences one year following the earlier of the date the Franchised Business opens for business, or the Opening Deadline specified in the Franchise Agreement. The Minimum Royalty may be implemented as $750 per semi-monthly period or pursuant to another royalty payment schedule that we designate. Currently, the Royalty Fee is due semi-monthly, as follows: (i) the first payment is due by the 25th day of each month based on Gross Revenue from the 1st day through the 15th day of the month, and (ii) the second payment is due by the 10th
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 typically 6% of gross revenue or a minimum of $1,500 per month, whichever is greater. These royalty fees are paid semi-monthly unless Benjamin Franklin Plumbing designates a different payment period.
For a start-up franchise, the first semi-monthly royalty payment is due by the 25th day of each month, based on gross revenue from the 1st through the 15th day of that month. The second payment is due by the 10th day of the following month, covering gross revenue from the 16th day through the last day of the preceding month.
It's important to note that Benjamin Franklin Plumbing retains the right to modify their policies regarding revenue recognition and reporting, which could affect the calculation of gross revenue and, consequently, the royalty fee. Franchisees should also be aware that the minimum royalty commences one year after the franchise opens or after a specified opening deadline.