When does the royalty fee obligation begin for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2. Royalty.
Beginning at the earlier of the Opening Deadline or when the Franchised Business opens, you are required to pay us an ongoing royalty fee in the amount shown in the Brand Appendix ("Royalty Fee").
Unless we designate a different period, the Royalty Fee will be paid on the schedule shown in the Brand Appendix.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the royalty fee obligation begins at the earlier of two events: the Opening Deadline or when the Franchised Business opens. The specific amount and payment schedule for the Royalty Fee are detailed in the Brand Appendix.
This means that a new Benjamin Franklin Plumbing franchisee will start paying royalty fees as soon as their business is open, even if it's before the final deadline set by the franchisor. This is a standard practice in franchising, as it aligns the franchisee's success with the franchisor's revenue stream.
Prospective franchisees should carefully review the Brand Appendix to understand the exact royalty fee structure, including the percentage of gross revenue required and the payment schedule (e.g., weekly, monthly). Understanding these obligations is crucial for financial planning and ensuring sufficient cash flow to cover ongoing fees.