What accounting standard did Benjamin Franklin Plumbing's parent company use for the Woofie's acquisition?

According to the 2025 FDD, Benjamin Franklin Plumbing's parent company accounted for the acquisition of Woofie's as a business combination pursuant to ASC 805. This accounting standard, ASC 805, dictates that the fair values are assigned to tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date. These values are based on the information available as of the acquisition date. The FDD states that there were no material changes to the purchase price allocation for the Woofie's Acquisition during the year ended December 31, 2023.

In simpler terms, when Benjamin Franklin Plumbing's parent company bought Woofie's, they followed a specific set of rules (ASC 805) to determine the value of everything they acquired, including physical assets like equipment, intangible assets like brand recognition, and any debts they took on. This valuation was based on the information they had at the time of the acquisition. The amount they paid above the fair value of these assets was recorded as goodwill.

For a prospective Benjamin Franklin Plumbing franchisee, this information provides insight into how the parent company handles acquisitions and ensures transparency in their financial reporting. Understanding the accounting standards used can help franchisees assess the financial stability and practices of the parent company, which can be a factor in their decision to invest in a franchise.