What was the amount of acquisitions related to goodwill for Benjamin Franklin Plumbing in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
years | $ | 148,188 | $ | 29,638 | $ | 118,550 | 8 years | | ASP | 10 years | | 16,285 | | 3,257 | | 13,028 | 8 years | | Mosquito Squad | 10 years | | 12,422 | | 2,484 | | 9,938 | 8 years | | Clockwork | 10 years | | 44,664 | | 8,933 | | 35,731 | 8 years | | Monster | 10 years | | 17,378 | | 3,476 | | 13,902 | 8 years | | DoodyCalls | 10 years | | 6,191 | | 1,238 | | 4,953 | 8 years | | Junkluggers | 10 years | | 42,913 | | 8,583 | | 34,330 | 8 years | | Screenmobile | 10 years | | 8,403 | | 1,611 | | 6,792 | 8.08 years | | Other acquisitions | 10 years | | 3,497 | | 698 | | 2,799 | 8 years | | Goodwill, net | | $ | 299,941 | $ | 59,918 | $ | 240,023 | | | | As of December 31, 2023 | | | | | | |--------------------|-------------------------|--------------------|---------|------------------------------|-----------------------------|------------------------| | | Estimated | | | Accumulated | | Weighted Average Remaining | | Authority Brands | Useful Life | Gross Amount | 148,188 | Amortization | Net Amount | Useful Life | | | 10 year
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, the goodwill, net amount related to acquisitions for Benjamin Franklin Plumbing as of December 31, 2023, was $270,017. The gross amount of goodwill was $299,941, with accumulated amortization of $29,924.
When Benjamin Franklin Plumbing acquires other companies or brands, the excess of the purchase price over the fair value of identifiable net assets is recorded as goodwill. Goodwill is an intangible asset that represents the expected future economic benefits from the acquisition, such as synergies and strategic advantages. The company amortizes these identifiable intangible assets like trademarks, franchise relationships, and non-competition agreements over their useful lives.
For a prospective Benjamin Franklin Plumbing franchisee, understanding goodwill is important because it reflects the overall financial health and acquisition strategy of the franchisor. A significant amount of goodwill may indicate that the franchisor has been actively acquiring other businesses, which could lead to increased brand recognition, expanded service offerings, and improved market position. However, it is also important to assess the quality of these acquisitions and their integration into the existing franchise system to ensure long-term value and stability.