As of December 31, 2024, what was the net amount of the Goodwill related to Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
d for the years ended December 31, 2023 and 2022.
Estimated amortization expense for the subsequent five years and thereafter is as follows:
| 2025 | $ 31,115 |
|---|---|
| 2026 | 31,041 |
| 2027 | 31,038 |
| 2028 | 30,981 |
| 2029 | 30,680 |
| Thereafter | 207,665 $ 362,520 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the net amount of Goodwill as of December 31, 2024, was $240,023. This figure represents the value of intangible assets like brand reputation and customer relationships, less any amortization. Goodwill is an accounting concept that arises when a company acquires another company for a price higher than the fair market value of its net assets.
Benjamin Franklin Plumbing amortizes goodwill on a straight-line basis over ten years, starting January 1, 2023, following the private company alternative accounting approach. The beginning goodwill for the year 2024 was $270,017, and amortization for the year amounted to $29,994, resulting in the net goodwill of $240,023 at the end of the year.
For a prospective franchisee, goodwill can be an important factor to consider. A higher goodwill value may indicate a stronger brand presence and customer loyalty, which could translate to a more successful franchise. However, it's also important to understand how the company calculates and amortizes goodwill, as this can impact the reported value. Franchisees should also be aware that the value of goodwill can fluctuate over time, depending on various factors such as market conditions and the company's performance.