As of December 31, 2024, what was the allowance for doubtful accounts for Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
olidated balance sheets. The Company recognized $1,917, $1,957 and $689 of commission costs in franchise sales expenses on the consolidated statements of comprehensive loss for the years ended December 31, 2024, 2023 and 2022.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are sta
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the allowance for doubtful accounts as of December 31, 2024, was $7,845. The allowance for doubtful accounts represents the amount that Benjamin Franklin Plumbing estimates it may not collect from outstanding accounts receivable balances. This is based on factors such as historical experience, current economic conditions, and forecasts.
For a prospective Benjamin Franklin Plumbing franchisee, the allowance for doubtful accounts is an important metric to consider when evaluating the financial health of the company. It provides insight into the credit risk associated with the company's accounts receivable. A higher allowance for doubtful accounts may indicate that the company is having difficulty collecting payments from its customers, which could impact its cash flow and profitability.
In addition to the allowance for doubtful accounts, the FDD also discloses the bad debt expense and write-offs of uncollectible accounts. For the year ended December 31, 2024, Benjamin Franklin Plumbing recognized bad debt expense of $3,577 and had write-offs of uncollectible accounts of $1,489. Reviewing these figures alongside the allowance for doubtful accounts can provide a more comprehensive understanding of the company's credit risk management practices. Franchisees should monitor these figures to understand the potential impact on their own business's financial performance.