What was the amount of Benjamin Franklin Plumbing's residential service expenses in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, | As revised | 2022 | As Previously Reported | Adjustments | As Revised | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| As Previously Reported | 2023 Adjustments | As revised | 2022 | As Previously Reported | Adjustments | As Revised | |||||
| Franchise service fees | $ 170,280 | $ | (10,514) $ | 159,766 | $ | 152,837 | $ | (9,493) | $ | 143,344 | |
| Other revenues | 33,399 | (1,842) | 31,557 | 31,031 | (1,926) | 29,105 | |||||
| Total revenues | 429,524 | (12,356) | 417,168 | 375,356 | (11,419) | 363,937 | |||||
| Franchise support expenses | 125,437 | (10,514) | 114,923 | 101,662 | (9,493) | 92,169 | |||||
| Residential service expenses | 175,217 | (1,842) | 173,375 | 148,881 | (1,926) | 146,955 | |||||
| Total costs and expenses | $ 470,046 | $ | (12,356) $ | 457,690 | $ | 395,874 | $ | (11,419) | $ | 384,455 |
As of December 31, 2024 and 2023, the Company owned and operated 21 and 25 store locations, respectively. Expenses related to the management and operation of these owned businesses are included in the residential service expenses line in the consolidated statements of comprehensive loss for the years ended December 31, 2024, 2023 and 2022.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the company's residential service expenses for the year 2023 were initially reported as $175,217. However, after adjustments of ($1,842), the revised residential service expenses for 2023 amounted to $173,375.
These expenses are related to the management and operation of company-owned store locations. As of December 31, 2023, Benjamin Franklin Plumbing owned and operated 25 store locations. The residential service expenses include costs associated with these company-owned businesses.
Prospective franchisees should understand that the financial performance represented in the FDD reflects the operation of both franchised and company-owned locations. The inclusion of expenses from company-owned stores in the residential service expenses may not directly translate to the expected expenses of a franchised location. It is important for potential franchisees to discuss with the franchisor how these expenses are allocated and what expenses they can anticipate for their specific franchise operation.