What was the amortization expense for Benjamin Franklin Plumbing's goodwill in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
d for the years ended December 31, 2023 and 2022.
Estimated amortization expense for the subsequent five years and thereafter is as follows:
| 2025 | $ 31,115 |
|---|---|
| 2026 | 31,041 |
| 2027 | 31,038 |
| 2028 | 30,981 |
| 2029 | 30,680 |
| Thereafter | 207,665 $ 362,520 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the amortization expense for goodwill in 2024 was $29,994. This figure represents the expense recognized from amortizing the goodwill asset during that year. Goodwill typically arises from acquisitions and represents the intangible value exceeding the fair value of identifiable net assets acquired.
Amortization is the systematic allocation of the cost of an intangible asset over its useful life. For Benjamin Franklin Plumbing, this means that the initial value of goodwill is being reduced over time, reflecting its contribution to the company's earnings. The net goodwill at the end of 2024 was $240,023, which is calculated by subtracting the amortization expense from the beginning goodwill balance of $270,017.
Prospective franchisees should understand how goodwill is accounted for, as it can impact the financial statements of Benjamin Franklin Plumbing. While goodwill amortization is a non-cash expense, it does affect the reported net income. Additionally, any impairment charges to goodwill, which are separate from amortization, can also significantly impact the company's financial performance. Reviewing these figures helps potential franchisees assess the financial stability and accounting practices of the franchisor.