What was the amount of restricted cash reported for Benjamin Franklin Plumbing in 2022?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net loss | $ (104,486) | $ (59,534) | $ (35,630) |
| Adjustments to reconcile net loss to net cash provided by operating activities | |||
| Depreciation and amortization | 102,085 | 106,568 | 50,771 |
| Increase/(reduction) in inventory reserve | 60 | (42) | (39) |
| Bad debt expense | 3,577 | 3,123 | 1,637 |
| Stock-based compensation | 2,922 | 6,006 | 21,820 |
| Impairment loss | 23,240 | - | - |
| Loss on sale of retail | 11,276 | - | - |
| Gain on disposal of property and equipment | (497) | (391) | (305) |
| Amortization of deferred loan costs | 1,742 | 1,650 | 1,692 |
| Deferred taxes | (12,188) | (13,180) | (4,278) |
| Changes in assets and liabilities | |||
| Accounts receivable | (5,969) | (4,383) | (3,845) |
| Inventory | (759) | 589 | (843) |
| Prepaid expenses and other current assets | 2,841 | (3,088) | (2,326) |
| Other assets | (1,988) | (3,185) | (1,572) |
| Accounts payable | (3,177) | (1,484) | 1,815 |
| Accrued liabilities | 11,255 | (3,273) | (6,254) |
| Other liabilities | 3,774 | (127) | 138 |
| Deferred revenue | (514) | 162 | 3,365 |
| Operating lease right-of-use assets and operating lease liabilities, net | (201) | 290 | 145 |
| Net cash provided by operating activities | 32,993 | 29,701 | 26,291 |
| Cash flows from investing activities | |||
| Business acquisitions, net of cash acquired | - | (35,105) | (94,792) |
| Purchases of assets through asset acquisition | - | (325) | (1,570) |
| Purchases of property and equipment | (1,271) | (2,898) | (1,772) |
| Proceeds on disposal of property and equipment | 497 | 1,234 | 332 |
| Capitalized software development costs | (4,801) | (12,830) | (12,446) |
| Net cash used in investing activities | (5,575) | (49,924) | (110,248) |
| Cash flows from financing activities | |||
| Distributions to parent | - | - | (21,135) |
| Capital contributions | - | 675 | - |
| Principal payments on finance 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 in
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 reported $3,216 in restricted cash for the year 2022. This figure is part of a reconciliation of cash, restricted cash, and cash equivalents detailed in the consolidated balance sheet. Restricted cash, along with cash and cash equivalents, contributes to the total cash, restricted cash, and cash equivalents shown in the statement of cash flows.
Restricted cash typically refers to funds that are set aside for a specific purpose and are not available for general use by the company. In the case of Benjamin Franklin Plumbing, as of December 31, 2024 and 2023, restricted cash was held under the requirements of certain corporate insurance plans and as collateral in connection with the purchasing card program.
For a prospective franchisee, understanding the levels and purposes of restricted cash is important. It provides insight into the company's financial obligations and how it manages its funds. While the specific requirements for restricted cash can vary, it is a common practice for companies to maintain such reserves for insurance and collateral purposes.