Benjamin Franklin Plumbing Franchise Costs, Fees & FDD

Year Business Began: 2000

Franchising Since: 2001

Headquarters: Columbia, Maryland

Estimated Number of Units: 365

Franchise Description: The franchisor is Benjamin Franklin Franchising SPE LLC. The franchisor’s direct parent company is AB Assetco LLC. The indirect parent company is Authority Brands, Inc. The franchised business offers residential and light commercial plumbing services, including maintenance, repair, remodeling and replacement; water conditioning maintenance, repair and replacement; drain and septic tank digging, cleaning, re-piping and replacement; and drain cleaning services, but excluding industrial and new construction services.
Training Overview: Before the franchised business opens, the “key person” and any owners that the franchisor designates must attend and successfully complete an initial training program at least three weeks prior to opening the franchised business. The training program consists of two phases: phase one, which is conducted online (currently called “initial training”), and phase two, which is a proprietary franchise performance and development training program conducted in a classroom setting (currently called branded operations orientation training or “BOOT”). After the franchised business opens, the franchisor will make available, at the time(s) and location(s) it designates, such other required and optional training programs as it deems necessary and appropriate.

Territory Granted: Franchisees will have a protected territory during the term of their Franchise Agreement, provided they are in full compliance with the terms of the Franchise Agreement, including certain minimum performance requirements and their obligation not to service customers outside of the territory. “Protected” means that the franchisor will not operate a business under the marks and the system in the territory or authorize others to operate franchised businesses within the territory, with certain exceptions. This does not prohibit the franchisor from advertising or soliciting employees or independent contractors in the territory. Franchisees will be able to choose their territory based on available pre-defined territories. Typically, the territory is based on total population blocks of approximately 100,000 individuals and defined using postal zip codes present at the time the territory is defined, although it can vary.

Obligations and Restrictions: Franchisees must designate an individual who will be responsible for the day-to-day operational performance of the franchised business and who has the authority to bind the franchisee in all decisions regarding the franchised business (the “key person”). The key person need not be an owner of the franchised business. However, the key person must complete the training program and must work on premises at the business office. Spouses of franchisees will be required to sign a Spouse Acknowledgement, by which the spouse acknowledges that the franchisor is relying on all assets of the guarantor, including jointly owned marital property, in accepting the guarantor’s obligations. Franchisees are required to offer and sell all products and services that the franchisor designates as required items for Benjamin Franklin Plumbing businesses. Franchisees may also offer for sale any optional products and services that the franchisor has approved for sale in the franchised business. Franchisees are prohibited from offering any unapproved products or services without the franchisor’s prior written consent, and franchisees must discontinue selling or offering for sale any products or services that the franchisor disapproves of at any time.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees can renew the Franchise Agreement for one additional term of 10 years if they meet certain conditions.

Financial Assistance: In the franchisor’s discretion, it may permit franchisees to finance up to 75% of the franchise fee and any applicable additional population fee rather than paying the entire amount in a lump sum when they sign the Franchise Agreement. However, the franchisor does not offer financing for any transaction involving brokers or any other third-party referral sources. Except as described, the franchisor does not offer direct or indirect financing to franchisees. The franchisor will not guarantee a franchisee’s promissory note, lease, or other obligation.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$43,000	$43,000
Grand Opening Marketing	$0	$6,000
Rent / Lease of Real Estate	$3,090	$9,270
Leasehold Improvements	$1,030	$4,120
Computer, Technology Systems, and Software	$1,854	$4,120
Office Furniture and Equipment	$1,545	$4,120
Machinery, Tools and Equipment	$3,090	$10,300
Vehicles	$8,240	$15,450
Vehicle Upfitting	$0	$5,150
Signage for Vehicles	$0	$8,240
Office Signage	$1,030	$5,150
Travel Expenses for Initial Training	$2,575	$5,150
Initial Vehicle Inventory	$2,575	$8,240
Insurance	$4,120	$8,240
Start-up Supplies	$2,575	$5,150
Professional Fees and Licensing	$4,635	$20,600
Vehicle Registration Fees	$2,266	$4,532
Decals for Consumer Units	$309	$515
Telephone Services	$309	$515
Personal Tools for Technicians	$1,030	$3,090
Full Time General Manager / Operations Manager	$0	$25,750
Additional Funds (3 months)	$60,000	$90,000
ESTIMATED TOTAL	$143,273	$286,702

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross revenue or $1,500 per month, whichever is greater.
Brand Fund Contribution	Currently, the contribution is based on the Gross Revenue for the calendar year and is payable according to a fee schedule provided by the franchisor.
Brand Fund Materials	The franchisor’s costs.
Local Marketing and/or Cooperative	See FDD.
Grand Opening Marketing	$18,000 beginning 30 days prior to opening the franchised business through 60 days after opening the franchised business (average of $6,000/month).
Territory Infringement Fee	Varies. Dependent upon number of violations.
Key Account Programs	Will vary under circumstances and may be determined based on number of participating franchisees or other factors.
Technology Fees	Franchisees will pay ongoing fees for various technology services and apps.
Additional Opening Support Fee	A reasonable fee, up to $500 per day, plus the reasonable travel, meal, and lodging expenses of the franchisor’s opening support personnel.
Training Fees – Remedial and Optional Training	$1,500 per trainee.
Annual Conference	Determined by the franchisor based on its anticipated costs of the conference.
Non-Attendance Fee	$500 for the first missed conference and $2,000 for any conference missed consecutively thereafter.
Call Center Fee	Currently, $2.05 per call and $29 per call that results in a booked customer.
Service Deficiency Fee	The franchisor’s costs.
Renewal Fee	$5,000
Transfer Fee	Generally, $10,000.
Change of Ownership Fee	Currently, (a) the greater of $500 or the franchisor’s external legal and administrative costs; plus (b) applicable training fee, currently $1,500 for each individual the franchisor requires to attend training.
Procurement of Insurance	Cost of insurance, plus reasonable fee of up to 25% of total insurance premium cost. Payable only if the franchisee fails to obtain required insurance and the franchisor elects to obtain it on their behalf.
Vendor Review	The franchisor’s reasonable costs, plus the reasonable travel, meal, and lodging expenses of its vendor review personnel.
Management Fee	Up to $500 per day, plus the franchisor’s costs and overhead.
Step In Fee	Up to $500 per day, plus the franchisor’s costs and overhead.
Interest	12% per annum or the maximum rate permitted by applicable law, whichever is less
Late Fee	$100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence.
Insufficient Funds Fee	$50 or the amount the bank charges us due to the insufficient funds, whichever is greater.
Indemnity for Tax Withholding	Amount of any penalties, interest, and expenses the franchisor incurs.
Audit Costs	The franchisor’s costs and expenses of conducting audit, including travel and lodging.
Enforcement Costs	Will vary under circumstances.
Defense Costs	The franchisor’s actual costs and expenses.
Indemnification	Will vary under circumstances.
Liquidated Damages	See FDD. Payable only if the franchisor terminates the Franchise Agreement based on the franchisee’s default.
De-identification Fee	The franchisor’s costs.

The above information has been compiled from the FDD of Benjamin Franklin Plumbing. Year of FDD: 2025.
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