What was the depreciation and amortization expense for Benjamin Franklin Plumbing in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Co mm on Un its | St k oc Am nt ou | Ad d it ion al Pa id in Ca ita l p | Ac lat ed cu mu De fic it | Ot he r Co he ive mp re ns In / ( Lo ) co me ss | To tal Sto ck ho lde r's Eq ity u | ||
|---|---|---|---|---|---|---|---|
| Ba lan t D be r 3 1, 20 21 ce s a ec em | 1 | $ - | $ | 46 6, 0 9 6 | $ ( 8 2, 5 20 ) | $ ( 15 ) | $ 3 8 3, 5 6 1 |
| Ca ita l c i bu ion tr t p on s | - | - | 3 6, 0 24 | - | - | 3 6, 0 24 | |
| Sto k- ba d c ion at c se om pe ns | - | - | 21 8 20 , | - | - | 21 8 20 , | |
| D ist i bu ion t s t nt r o p are | - | - | ( 21 13 5 ) , | - | - | ( 21 13 5 ) , | |
| los Ne t s | - | - | - | ( ) 35 6 3 0 , | - | ( ) 35 6 3 0 , | |
| Ba lan t D be r 3 1, 20 22 ce s a ec em | 1 | - | 5 0 2, 8 05 | ( 11 8, 15 0 ) | ( 15 ) | 3 8 4, 6 40 | |
| Ca ita l c i bu ion tr t p on s | - | - | 7, 07 5 | - | - | 7, 07 5 | |
| Sto k- ba d c ion at c se om pe ns | - | - | 6, 0 0 6 | - | - | 6, 0 0 6 | |
| Ot | - | - | - | - | 14 | 14 | |
| he | |||||||
| he | |||||||
| ive | |||||||
| inc | |||||||
| r c | |||||||
| om | |||||||
| pre | |||||||
| ns | |||||||
| om | |||||||
| e | |||||||
| los Ne t s | - | - | - | ( ) 5 9, 5 3 4 | - | ( ) 5 9, 5 3 4 | |
| Ba lan t D be r 3 1, 20 23 ce s a ec em | 1 | - | 5 15 8 8 6 , | ( 4) 17 7, 6 8 | ( 1) | 3 3 8, 20 1 | |
| Sto k- ba d c ion at c se om pe ns | - | - | 2, 9 22 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the depreciation and amortization expense for 2023 was $106,568. This figure is part of the adjustments used to reconcile the net loss to net cash provided by operating activities. Depreciation and amortization are non-cash expenses, meaning they reduce net income without affecting cash flow.
For a prospective Benjamin Franklin Plumbing franchisee, understanding depreciation and amortization is crucial for assessing the true profitability and cash-generating ability of the franchise. While a net loss might seem concerning, the addition of depreciation and amortization can provide a clearer picture of the cash flow available for debt service, reinvestment, or distribution to the owner.
It's important to note that depreciation and amortization can vary depending on the assets owned and the accounting methods used. Reviewing these figures over several years, as presented in the FDD, can help a franchisee understand trends and potential future capital expenditure needs. Additionally, comparing these expenses to industry benchmarks can provide insights into the efficiency and asset management practices of Benjamin Franklin Plumbing.