Is a security deposit required for a Benjamin Franklin Plumbing franchise location?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
al space varies considerably depending on the location, type of property, and market conditions affecting commercial property. The estimate in the table includes three months of rent; however, your landlord may also require you to provide a security deposit of one month's or two months' rent. If you decide to purchase rather than lease the real estate, your initial investment cost may be substanti
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, securing a location for your franchise may require a security deposit. The FDD states that the estimate provided for initial investment includes three months of rent. However, the landlord has the discretion to require a security deposit, which could be one or two months' rent. This potential cost is an important consideration for prospective franchisees as it will impact the initial capital required to launch the business.
This security deposit is in addition to the estimated three months of rent included in the initial investment estimates. The actual amount of the security deposit will depend on the rental rate for the specific location chosen by the franchisee. The FDD also notes that if a franchisee chooses to purchase real estate instead of leasing, the initial investment costs could be substantially higher. Alternatively, if the franchisee already owns a suitable property, this cost could be $0, although property taxes may still apply.
Therefore, when planning their initial investment, prospective Benjamin Franklin Plumbing franchisees should budget for the possibility of needing to pay a security deposit, potentially equivalent to one or two months' rent, in addition to the other start-up costs outlined in the FDD. Franchisees should discuss lease terms and potential security deposit requirements with landlords during their site selection process to accurately estimate their initial investment.