To whom is the rent/lease of real estate paid for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Low Estimate | High Estimate | ||||
| (2) Franchise Fee | $5,000 | $5,000 | Lump sum or financed | On signing of Franchise Agreement | Us |
| Grand | $0 | $6,000 | As arranged | As incurred | Vendors |
| (3) | |||||
| Opening Marketing | |||||
| Rent/Lease of Real Estate | $0 | $9,270 | As arranged | As incurred | Landlord |
| (4) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–37)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the rent or lease payments for real estate are made directly to the landlord. This is a standard practice in franchising, where franchisees typically lease or purchase their business locations from a third-party property owner.
The estimated initial investment for rent/lease of real estate ranges from $0 to $9,270. This estimate includes three months of rent, but the landlord may also require a security deposit, typically one or two months' rent. The wide range in the estimate accounts for differences in property costs depending on location and market conditions.
It's important to note that if a Benjamin Franklin Plumbing franchisee chooses to purchase the real estate instead of leasing, the initial investment cost could be significantly higher. Alternatively, if the franchisee already owns the real estate, the cost would be $0, although they would still be responsible for property taxes. The FDD indicates that the method of payment for rent/lease is 'as arranged' and due 'as incurred,' meaning the specific payment terms are determined between the franchisee and the landlord as expenses arise.