As of December 31, 2023, what was the gross amount of Benjamin Franklin Plumbing's trademarks?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Estimated Useful Life | Gross Amount | Accumulated Amortization | Impairment | Net Amount | Weighted Average Remaining Useful Life | ||||||
| Trademarks(1) | 15-25 years | $ | 179,232 | $ | 35,973 | $ | 954 | $ | 142,305 | 20.1 | |
| Franchise relationships(2) | 15 years | 353,475 | 133,282 | 842 | 219,351 | 9.4 | |||||
| Referral relationships | 15 years | 12,626 | 1,812 | - | 10,814 | 12.8 | |||||
| Software(3) | 10 years | 7,500 | 3,812 | 2,544 | 1,144 | 0.3 | |||||
| Customer relationships(4) | 4-5 years | 46,843 | 29,332 | 1,781 | 15,730 | 2.1 | |||||
| Proprietary processes | 10 years/7 years | 2,449 | 1,378 | - | 1,071 | 4.6 | |||||
| Noncompetition agreements | 5 years | 2,000 | 1,511 | - | 489 | 2.3 | |||||
| Intangible assets, net | $ | 604,125 | $ | 207,100 | $ | 6,121 | $ | 390,904 |
*(1
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, as of December 31, 2023, the gross amount of their trademarks was reported as $179,232. This figure represents the historical cost of acquiring or developing the trademarks before any amortization or impairment is accounted for. The trademarks have an estimated useful life ranging from 15 to 25 years.
This gross amount is a key indicator of the value Benjamin Franklin Plumbing places on its brand and intellectual property. It reflects the initial investment made to establish and protect the brand's identity. However, it's important to note that this is a historical cost and doesn't necessarily reflect the current market value of the trademarks.
For a prospective franchisee, understanding the value and protection of the Benjamin Franklin Plumbing trademarks is crucial. A strong brand can significantly impact customer recognition and trust, which can be a major advantage in a competitive market. The FDD also lists accumulated amortization of $28,779 against these trademarks, resulting in a net amount of $150,453. Amortization is the systematic reduction of the intangible asset's value over its useful life, reflecting its gradual consumption or obsolescence.
It is important to note that there is a slight discrepancy in the provided data. One table indicates the gross amount of trademarks as $178,010, while another table shows it as $179,232. Prospective franchisees should seek clarification from Benjamin Franklin Plumbing regarding this difference to ensure accurate understanding of the company's financials.