Under what conditions can Benjamin Franklin Plumbing charge a Step In Fee?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Step In Fee | Up to $500 per day, plus our costs and overhead | As invoiced | If you are in default under your Franchise Agreement, we have the right to step in and operate the Franchised Business until we determine the default has been cured. We may charge you a fee for these services. |
Source: Item 6 — OTHER FEES (FDD pages 18–27)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, a Step In Fee may be charged if a franchisee is in default under their Franchise Agreement. In such cases, Benjamin Franklin Plumbing has the right to step in and operate the franchised business until they determine that the default has been resolved.
The Step In Fee is intended to compensate Benjamin Franklin Plumbing for the costs and overhead incurred while managing the business during the period of default. The fee can be up to $500 per day, in addition to the franchisor's costs and overhead. This fee is invoiced to the franchisee.
This provision in the Franchise Agreement allows Benjamin Franklin Plumbing to protect its brand and the interests of other franchisees by ensuring the continued operation of a business that is not meeting its obligations. For a prospective franchisee, it highlights the importance of adhering to the terms of the Franchise Agreement to avoid incurring additional fees and potential intervention by the franchisor.