Under what circumstances is the Management Fee payable for a Benjamin Franklin Plumbing franchise?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
if you ask us to evaluate a potential vendor; payable whether or not we approve the vendor. Please see Item 8. |
| (1) Type of Fee | Amount | Date Due | Remarks |
|---|---|---|---|
| Management Fee | Up to $500 per day, plus our costs and overhead | Within 30 days after invoice | Payable only if: (a) the Key Person (see Item 15) dies or is incapacitated and we elect to manage the Franchised Business pending transfer of his or her interest; or (b) the Key Person is arrested for or formally charged with a serious |
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 Management Fee is payable under specific circumstances where Benjamin Franklin Plumbing steps in to manage the franchise. This fee, which can be up to $500 per day plus costs and overhead, is charged when the Key Person, as defined in Item 15, is either deceased or incapacitated, and Benjamin Franklin Plumbing elects to manage the business pending the transfer of interest. It is also payable if the Key Person is arrested or formally charged with a serious criminal offense, leading Benjamin Franklin Plumbing to take over operations until the charges are resolved.
This Management Fee is invoiced and due within 30 days of the invoice date. This fee is separate from other fees such as the Royalty Fee, Step In Fee, and Technology Fee, each of which covers different aspects of the franchise operation and support. The Management Fee is not a standard, ongoing fee but rather a conditional charge that arises only when Benjamin Franklin Plumbing provides direct management oversight due to specific, serious circumstances involving the Key Person.
For a prospective Benjamin Franklin Plumbing franchisee, this means that while the Management Fee is not a typical operating expense, it is essential to understand the conditions under which it could be applied. It highlights the importance of having a succession plan and ensuring compliance with all legal and brand standards to avoid situations where Benjamin Franklin Plumbing might need to step in and manage the business. Understanding these conditions allows franchisees to better prepare for unforeseen circumstances and mitigate potential costs associated with the Management Fee.