What was the cash and cash equivalents at the end of the year for Benjamin Franklin Plumbing in 2024?
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's cash and cash equivalents at the end of 2024 totaled $46,193. This figure represents the amount of readily available cash the company had on hand at the close of the fiscal year. In addition to unrestricted cash, Benjamin Franklin Plumbing also held $5,631 in restricted cash. Restricted cash is cash that is set aside for a specific purpose and not available for general use. For Benjamin Franklin Plumbing, this restricted cash is held under the requirements of certain corporate insurance plans and as collateral in connection with the purchasing card program.
The FDD also provides a reconciliation of cash, restricted cash, and cash equivalents reported in the consolidated balance sheet. The total cash, restricted cash, and cash equivalents shown in the statement of cash flows for 2024 is $51,824. This number is the sum of the cash and cash equivalents ($46,193) and the restricted cash ($5,631). It's important to note that the company considers all cash and highly liquid investments purchased with an initial maturity of three months or less to be cash or cash equivalents. Cash primarily consists of cash on hand and cash on deposit.
For a prospective franchisee, understanding the cash position of the franchisor is crucial. It provides insight into the financial stability and liquidity of the company. A healthy cash balance suggests that the franchisor has sufficient resources to meet its short-term obligations and invest in future growth. However, it is also important to consider the nature of any restricted cash and how it might impact the franchisor's ability to respond to unexpected challenges or opportunities. Reviewing these figures over the three-year period can reveal trends in the company's cash management and overall financial health.