What was the amount of amortization for Benjamin Franklin Plumbing in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
---|----|--------------|----|------------|----------------------------------| | | Estimated | | | | Accumulated | | | Weighted Average Remaining | | | Useful Life | | Gross Amount | | Amortization | | Net Amount | Useful Life | | Trademarks | 15-25 years | $ | 178,010 | $ | 28,685 | $ | 149,325 | 20.3 | | Franchise relationships
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing's amortization expense for the year ending December 31, 2024, was $31,193. In addition to this amortization expense, Benjamin Franklin Plumbing recognized impairment charges of $3,000 on Trademarks and Software intangible assets.
Amortization is the process of spreading out the cost of an intangible asset over its useful life. For a Benjamin Franklin Plumbing franchisee, understanding amortization is crucial for accurately assessing the financial performance of the franchise. It affects the reported profits and losses, and consequently, the franchisee's tax obligations.
The FDD also provides amortization expenses for prior years, which can be useful for identifying trends. For example, the amortization expense was $31,641 in 2023 and $29,076 in 2022. Reviewing these figures can help a prospective franchisee understand how these expenses have changed over time and how they might affect future profitability. Additionally, the FDD includes estimated amortization expenses for the subsequent five years, offering a forward-looking view of these costs.
Prospective franchisees should carefully review these figures and consider how they might impact their own financial projections. It is also advisable to consult with a financial advisor to fully understand the implications of amortization and impairment charges on the overall financial health of a Benjamin Franklin Plumbing franchise.