What were the distributions to the guarantor related to Benjamin Franklin Plumbing in 2022?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
expenses | 1,848 | 3,817 | | 4,409 | | | Depreciation and amortization | 65,562 | 63,526 | | 30,882 | | | Impairment loss | 17,775 | - | | - | | | Total costs and expenses | 241,110 | 211,120 | | 154,393 | | | Operating (loss) income | (14,674) | 7,947 | | 36,380 | | | Interest income | 329 | 269 | | 197 | | | Interest expense, net | (17) | (36) | | (12) | | | Net (loss) income | $ (14,362) $ | 8,180 | $ | 36,565 | |
AB Assetco LLC and Subsidiaries Consolidated Statements of Changes in Member's Equity Years Ended December 31, 2024, 2023 and 2022 (In thousands)
| Total | ||
|---|---|---|
| Member's Equity | ||
| Balances at December 31, 2021 | $ | 688,857 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the distributions to the guarantor in 2022 were $69,644. This figure is part of a table showing changes in member's equity from 2021 to 2024. The table also lists other financial activities, such as contributions of assets and liabilities, stock-based compensation, and net income, which impact the overall member's equity.
For a prospective Benjamin Franklin Plumbing franchisee, this indicates that the guarantor, likely an individual or entity providing financial backing, received a significant distribution. These distributions can be a return on investment, a management fee, or some other form of compensation as defined in the franchise agreement. Understanding the context and reasons behind these distributions is crucial for assessing the financial stability and operational practices of the franchise system.
It is important to note that these distributions are not necessarily indicative of the franchisee's potential earnings or financial obligations. However, they do provide insight into how the franchise manages its finances and compensates its stakeholders. A potential franchisee should investigate the reasons for these distributions and how they might affect the long-term financial health of the franchise.
Prospective franchisees should consult with a financial advisor to fully understand the implications of these distributions and how they fit into the overall financial picture of the Benjamin Franklin Plumbing franchise.