What was the amount of capital contributions for Benjamin Franklin Plumbing in 2022?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
e lease obligations | (4,902) | (4,026) | (2,775) | | Borrowings from long-term debt, net of deferred financing cost | 3,125 | 47,890 | 103,869 | | Repayments of long-term debt | (4,250) | (11,250) | (7,525) | | Net cash (used in)/provided by financing activities | (6,027) | 33,289 | 72,434 | | Increase/(decrease) in cash and cash equivalents | 21,391 | 13,066 | (11,523) | | Cash, restricted cash and cash equivalents | | | | | Beginning of year | 30,433 | 17,367 | 28,890 | | End of year | $ 51,824 | $ 30,433 | $ 17,367 |
The accompanying notes are an integral part of these consolidated financial statements
Authority Brands Inc. and Subsidiaries Consolidated Statements of Cash Flows, Continued (In thousands)
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Reconciliation of cash, restricted cash, and cash equivalents reported in the | |||
| consolidated balance sheet | |||
| Cash and cash equivalen |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the capital contribution – rollover equity for the company in 2022 was $36,024. This figure reflects noncash investing and financing activities related to capital contributions.
Capital contributions, especially those categorized as "rollover equity," typically represent investments made by owners or stakeholders into the business. In this context, it suggests that $36,024 was contributed in the form of equity rather than cash. This can occur when existing assets or equity from another venture are transferred into Benjamin Franklin Plumbing, affecting the company's overall financial structure and potentially its operational capabilities.
For a prospective franchisee, understanding these capital contributions is crucial as it provides insight into the financial activities and stability of Benjamin Franklin Plumbing. While this specific entry reflects noncash contributions, it demonstrates how the company manages its finances and attracts investment. Franchisees may want to inquire about the nature of these contributions and how they impact the franchise system's growth and support mechanisms.