What was the adjustment to Franchise service fees for Benjamin Franklin Plumbing in 2023 as a result of the revision?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
rebates received from third-party vendors for company-owned stores had been presented in other revenues rather than as a reduction to residential service expenses on the consolidated statements of comprehensive loss. The Company has evaluated the impact of these errors both quantitatively and qualitatively and has determined they are not material to the previously issued consolidated statements of comprehensive loss for the years ended December 31, 20
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the franchise service fees saw an adjustment of $(10,514) in 2023. The adjustment revised the previously reported amount of $170,280 to a final revised amount of $159,766 for the year.
This adjustment indicates a change in how franchise service fees were calculated or reported, potentially due to corrections, accounting changes, or other factors affecting revenue recognition. For a prospective franchisee, this highlights the importance of understanding the factors that can influence reported financial figures and the potential for adjustments to occur.
It would be prudent for a potential Benjamin Franklin Plumbing franchisee to inquire about the reasons for this adjustment and whether similar adjustments are expected in the future. Understanding the stability and predictability of franchise service fees is crucial for accurate financial planning and assessing the overall financial health of the franchise system.