As of December 31, 2023, what is the net amount of Goodwill related to Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
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- x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
April 2, 2025
AB Assetco LLC and Subsidiaries Consolidated Balance Sheets (In thousands)
| As of December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 51 $ | 2,063 | ||
| Accounts receivable, net | 28,612 | 23,790 | |||
| Inventory, net | 3,078 | 2,742 | |||
| Prepaid expenses and other current assets | 6,303 | 6,362 | |||
| Total current assets | 38,044 | 34,957 | |||
| Property and equipment, net | 12,689 | 32,492 | |||
| Intangible assets, net | 362,520 | 396,713 | |||
| Goodwill, net | 240,023 | 270,017 | |||
| Other assets | 12 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, as of December 31, 2023, the net goodwill for Benjamin Franklin Plumbing was $270,017. Goodwill represents the intangible assets acquired in a business combination, such as brand recognition and customer relationships. This figure reflects the value remaining after accumulated amortization has been subtracted from the original gross amount of goodwill.
Benjamin Franklin Plumbing amortizes goodwill over a ten-year period. The gross amount of goodwill as of December 31, 2023, was $299,941, with accumulated amortization of $29,924, resulting in the net amount of $270,017.
A prospective franchisee should understand how goodwill is accounted for, as it can affect the overall financial health and valuation of the franchise system. Monitoring changes in goodwill over time can provide insights into the stability and performance of Benjamin Franklin Plumbing.