For the Benjamin Franklin Plumbing referral incentive program, what is the duration of the 'Incentive Period'?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
We offer a referral incentive program that pays ongoing incentive payments for up to three years ("Incentive Period") to an Existing Franchisee (as defined above) of ours or any of our affiliated brands, subject to certain conditions, who first directly refers a candidate who: (a) has not previously been referred to us by another source or otherwise been in contact with and/or engaged with us, our affiliates or third party consultants or agents; (b) has not previously signed a Franchise Agreement with us or any of our affiliated brands; (c) who meets our qualifications for becoming a franchisee under the Conversion Incentive Program; (d) signs a Franchise Agreement with our standard terms in a new location on or before March 31, 2026; and (e) pays the Franchise Fee and any applicable Additional Population Fee in full at the time of signing the Franchise Agreement ("Conversion Referral"). The incentive payment is only paid with respect to the Franchised Business(es) first signed with us in a single transaction, regardless of if additional Territories are acquired by the Conversion Referral during the Incentive Period. The incentive payments are paid by check to the Existing Franchisee within forty-five (45) days of the end of the quarter of the current calendar year, according to the Conversion Referral's Royalty Fee payments made to us ("Royalties Paid"). The incentive payments will be calculated and paid according to the following schedule: (a) During the first twelve months following the Original Opening Date: 30% of Royalties Paid; (b) Months 13 through 36 following the Original Opening Date: 15% of Royalties Paid. "Original Opening Date" means the date on which you or any prior owner or predecessor operator of the Franchised Business first opened the Franchised Business. We may require the Conversion Referral and the Existing Franchisee to sign a separate agreement acknowledging and agreeing to the terms of this program for eligibility purposes. We reserve the right to apply incentive payments to any outstanding balances or past due amounts due to us by an Existing Franchisee. Additional terms and conditions may apply.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the Conversion Referral Program offers incentive payments for up to three years, which is referred to as the "Incentive Period." This incentive is offered to existing franchisees who refer a candidate that meets specific criteria and ultimately becomes a new Benjamin Franklin Plumbing franchisee.
The incentive payments are calculated based on the royalties paid by the new franchisee. During the first 12 months following the Original Opening Date, the existing franchisee receives 30% of the royalties paid. For months 13 through 36 after the Original Opening Date, the incentive payment decreases to 15% of royalties paid.
This program aims to encourage existing Benjamin Franklin Plumbing franchisees to actively recruit new franchisees. However, the franchisor may change or eliminate the referral incentive programs at any time without notice. Franchisees should also be aware that these payments may be applied to any outstanding balances owed to the franchisor.