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Can Benjamin Franklin Plumbing vary the initial franchise fees, and if so, under what circumstances?

Benjamin_Franklin_Plumbing Franchise · 2025 FDD

Answer from 2025 FDD Document

Initial franchise fees paid may not be uniform. In addition to the discount and incentive programs described in this Item, we may vary, reduce, negotiate, or make an exception to our standard Franchise Fee structure and/or payment terms related to mergers or other transactions, as well as for our existing franchisees or franchisees of our affiliates. For example, we may offer opportunities to license a franchise at a reduced initial fee to our or our affiliates' qualified existing franchisees in good standing. We may discontinue, modify, withdraw or reinstate any such opportunities or variations to initial fees without notice to you at any time.

Source: Item 5 — INITIAL FEES (FDD pages 15–18)

What This Means (2025 FDD)

According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the initial franchise fees may not be uniform and can vary based on several discount and incentive programs. These programs include incentives for military veterans and active personnel, women and minority applicants, conversion franchises, existing Benjamin Franklin Plumbing franchisees, existing franchisees of their affiliates, law enforcement officers and first responders, and existing AB Inc. employees. During the fiscal year 2024, the franchise fees collected, including any applicable Additional Population Fees, ranged from $0 to $76,700, indicating a significant degree of variability.

Benjamin Franklin Plumbing offers a Conversion Incentive Program for existing plumbing services businesses, which includes a $5,000 Conversion Down Payment at the time of signing the Franchise Agreement. The remaining Franchise Fee and any applicable Additional Population Fee may be deferred for five years, with potential forgiveness of up to 100% based on the franchised business's performance compared to its pre-conversion performance. Existing Benjamin Franklin Plumbing franchisees or franchisees of their affiliates who meet expansion qualifications and license an additional territory receive a 30% reduction in the Franchise Fee and any applicable Additional Population Fee for the additional territory.

Furthermore, Benjamin Franklin Plumbing provides a 30% reduction in the Franchise Fee and any applicable Additional Population Fee for honorably discharged veterans and active personnel in the American or Canadian armed forces. A $5,000 reduction in the Franchise Fee is available for minority-owned and women-owned businesses, as well as for businesses owned by law enforcement officers, firefighters, doctors, nurses, or EMTs/paramedics. These discounts typically apply to the first franchise only.

Benjamin Franklin Plumbing retains the right to vary, reduce, negotiate, or make exceptions to the standard Franchise Fee structure and/or payment terms related to mergers or other transactions, as well as for existing franchisees or franchisees of their affiliates. The franchisor may also offer opportunities to license a franchise at a reduced initial fee to qualified existing franchisees in good standing. It is important to note that Benjamin Franklin Plumbing may discontinue, modify, withdraw, or reinstate any such opportunities or variations to initial fees without notice at any time, which introduces an element of uncertainty for prospective franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.