What was the balance of accumulated deficit for Benjamin Franklin Plumbing as of December 31, 2022?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
expenses | 1,848 | 3,817 | | 4,409 | | | Depreciation and amortization | 65,562 | 63,526 | | 30,882 | | | Impairment loss | 17,775 | - | | - | | | Total costs and expenses | 241,110 | 211,120 | | 154,393 | | | Operating (loss) income | (14,674) | 7,947 | | 36,380 | | | Interest income | 329 | 269 | | 197 | | | Interest expense, net | (17) | (36) | | (12) | | | Net (loss) income | $ (14,362) $ | 8,180 | $ | 36,565 | |
AB Assetco LLC and Subsidiaries Consolidated Statements of Changes in Member's Equity Years Ended December 31, 2024, 2023 and 2022 (In thousands)
| Total | ||
|---|---|---|
| Member's Equity | ||
| Balances at December 31, 2021 | $ | 688,857 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the balance of member's equity as of December 31, 2022, was $735,930. This figure reflects the company's equity position at the end of the year, taking into account contributions, stock-based compensation, distributions, and net income. It's a snapshot of the ownership value in the company at that specific point in time. Note that this is member's equity, not accumulated deficit. The FDD does not specify the accumulated deficit.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the equity balance can provide insights into the financial stability and overall health of the franchisor. A higher equity balance generally indicates a stronger financial position, which can be reassuring for franchisees who are investing in the brand. However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive view of the franchisor's financial performance.
Since the FDD does not explicitly state the accumulated deficit, it would be prudent for potential franchisees to ask Benjamin Franklin Plumbing's franchisor directly about this figure. Understanding the accumulated deficit, in addition to the member's equity, can provide a more complete picture of the company's financial history and its ability to support its franchisees.