Where on the consolidated balance sheets are Benjamin Franklin Plumbing's long-term contract liabilities located?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
lities are included in other long-term liabilities on the consolidated balance sheets.
Contract assets and liabilities acquired in a business combination are accounted for in accordance with ASU 2021-08 – Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The Company accounts for
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, long-term contract liabilities are found under "other long-term liabilities" on the consolidated balance sheets. In 2024, these liabilities totaled $32,895, while in 2023, they amounted to $29,640.
Contract liabilities, in general, represent amounts collected or unconditional rights to consideration received in advance of delivering goods or services. These liabilities typically arise from billed amounts for obligations that have not yet been fulfilled and are recognized once the contract conditions are met. For Benjamin Franklin Plumbing, these liabilities primarily consist of initial franchise fees.
The initial franchise fees are collected close to the franchise agreement's execution date and are recognized on a straight-line basis throughout the agreement's term. The current portion of these contract liabilities is reported as deferred revenue on the consolidated balance sheets, while the long-term portion is categorized under other long-term liabilities.