When is the Royalty Fee due 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. |
(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 day of the next month for Gross Revenue from the 16th day through the last day of the immediately preceding month.
If you acquire the Franchised Business by transfer from a previous operator, the Minimum Royalty will be calculated using the average of the Royalty Fees paid by the previous operator in the prior 12 months. If the calculation results in a Minimum Royalty below $1,500, then for a period of twelve (12) months following the transfer effective date, the Minimum Royalty will be the calculated amount. At the expiration of the twelve (12) month period following the transfer effective date, and from then through the Expiration Date, the Minimum Royalty will be increased to $1,500.
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 due semi-monthly unless the franchisor designates a different period. The royalty is 6% of Gross Revenue or $1,500 per month (the “Minimum Royalty”), whichever is greater.
For a start-up franchise, or if an existing franchisee licenses one or more additional territories, the Minimum Royalty commences one year following the earlier of the date the franchised business opens 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 Benjamin Franklin Plumbing designates.
Currently, the Royalty Fee is due semi-monthly, as follows: 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 the second payment is due by the 10th day of the next month for Gross Revenue from the 16th day through the last day of the immediately preceding month. If a franchisee acquires the Franchised Business by transfer from a previous operator, the Minimum Royalty will be calculated using the average of the Royalty Fees paid by the previous operator in the prior 12 months. If the calculation results in a Minimum Royalty below $1,500, then for a period of twelve (12) months following the transfer effective date, the Minimum Royalty will be the calculated amount. At the expiration of the twelve (12) month period following the transfer effective date, and from then through the Expiration Date, the Minimum Royalty will be increased to $1,500.