How does Benjamin Franklin Plumbing compute amortization for intangible assets?

According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, intangible assets, such as trademarks, franchise relationships, software, proprietary processes, and noncompetition agreements, are initially recorded at their estimated fair value at the time they are acquired. The company then amortizes these assets over their estimated useful lives using the straight-line method.

For the Benjamin Franklin Plumbing franchisee, this means that the cost of intangible assets is spread evenly over their useful life, which impacts the franchisee's financial statements. The straight-line method provides a consistent and predictable expense each period, simplifying financial planning.

In 2024, 2023 and 2022, the amortization expense was $31,193, $31,641 and $29,076, respectively. In 2024, impairment charges of $3,000 were recognized on Trademarks and Software intangible assets. These charges reflect a reduction in the carrying value of these assets due to events or circumstances that indicated their value had declined. Goodwill, representing the excess of acquisition costs over the fair value of acquired assets and liabilities, is amortized on a straight-line basis over ten years, starting January 1, 2023. This approach is part of a private company accounting alternative.