Under what circumstances would a Benjamin Franklin Plumbing franchisee be required to pay a Management Fee?

According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, a franchisee may be required to pay a Management Fee under specific circumstances where the franchisor steps in to manage the business. This fee is designed to cover the costs and overhead incurred by Benjamin Franklin Plumbing for providing management services during critical situations.

The Management Fee, which can be up to $500 per day plus costs and overhead, becomes payable if the Key Person, as defined in Item 15 of the FDD, dies or becomes incapacitated. In this scenario, Benjamin Franklin Plumbing may elect to manage the franchised business until the interest is transferred to a new owner. The fee also applies if the Key Person is arrested or formally charged with a serious criminal offense, prompting Benjamin Franklin Plumbing to take over operations pending the resolution of the charges.

This provision ensures business continuity and adherence to brand standards during unforeseen circumstances. It is important for prospective franchisees to understand these conditions and factor in the potential costs associated with the Management Fee, as it can significantly impact their financial obligations in certain situations. Franchisees should clarify with Benjamin Franklin Plumbing what specific events constitute a 'serious criminal offense' and what procedures are involved in the transfer of interest following the death or incapacitation of the Key Person.