What was the balance of accumulated deficit for Benjamin Franklin Plumbing as of December 31, 2021?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Revenues | |||||
| Franchise service fees | $ 178,979 | $ 172,290 | $ | 154,607 | |
| Franchise sales fees | 11,574 | 12,947 | 5,045 | ||
| Other revenues | 35,883 | 33,830 | 31,121 | ||
| Total revenues | 226,436 | 219,067 | 190,773 | ||
| Costs and expenses | |||||
| Franchise support expenses | 116,616 | 114,910 | 92,890 | ||
| Franchise sales expenses | 5,123 | 4,905 | 2,520 | ||
| General and administrative expenses | 34,186 | 23,962 | 23,692 | ||
| Stock-based compensation expenses | 1,848 | 3,817 | 4,409 | ||
| Depreciation and amortization | 65,562 | 63,526 | 30,882 | ||
| Impairment loss | 17,775 | - | - | ||
| Total costs and expens |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Benjamin Franklin Plumbing provides information on member's equity balances, but it does not specifically list the accumulated deficit as of December 31, 2021. Instead, it shows the total member's equity balance at that date. The FDD includes a table outlining changes in member's equity over several years. This table details contributions, stock-based compensation, distributions, and net income or loss, which all affect the overall equity balance. However, the specific figure for accumulated deficit is not broken out.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the accumulated deficit is crucial for assessing the financial health of the franchise system. While the FDD provides the overall equity balance, the absence of a specific accumulated deficit figure makes it difficult to determine the historical profitability and retained earnings of the company. This information is essential for evaluating the long-term sustainability and financial stability of the franchise.
To gain a clearer picture, a potential franchisee should directly ask Benjamin Franklin Plumbing for the accumulated deficit figure as of December 31, 2021. Additionally, it would be prudent to request a breakdown of the components contributing to the member's equity balance, including retained earnings and any accumulated losses. Reviewing several years of financial statements and asking for clarification on any significant changes in equity can provide a more comprehensive understanding of the company's financial performance.