What was the deferred taxes amount for Benjamin Franklin Plumbing in 2023?

According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the total deferred tax liability in 2023 was approximately $(17,766). This figure represents the net amount of deferred tax liabilities, which primarily stem from items like intangibles, goodwill, operating lease right-of-use assets, and property and equipment. These liabilities reflect temporary differences between the book value of assets and liabilities and their tax bases, which will result in taxable amounts in the future when the assets are recovered or the liabilities are settled.

Specifically, in 2023, the gross deferred tax liability for Benjamin Franklin Plumbing included $(43,449) for intangibles, $(19,409) for goodwill, $(3,778) for the operating lease right-of-use asset, $(11,345) for property and equipment, and $(39) for other items. The sum of these negative values constitutes the gross deferred tax liability of $(78,020). When considering deferred tax assets, such as net operating losses and credits, deferred revenue, interest limitation, lease obligation liability, operating lease liabilities, capitalized R&D, accrued expenses, and allowance for doubtful accounts, the net deferred tax liability is $(17,766).

For a prospective Benjamin Franklin Plumbing franchisee, understanding these deferred tax implications is crucial. Deferred tax liabilities can impact the future tax obligations of the business, and it's important to consider how these liabilities will affect profitability and cash flow. Franchisees should consult with a financial advisor to fully understand the tax implications and how to plan for these future obligations. The presence of deferred tax liabilities suggests that Benjamin Franklin Plumbing has accounting practices that accelerate deductions or defer income for tax purposes, which can be a strategic advantage if managed correctly.