What was the estimated amortization expense for Benjamin Franklin Plumbing in 2025?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Amortization expense was $40,358, $42,723 and $38,223, for the years ended December 31, 2024, 2023 and 2022, respectively. Impairment charges of $6,121 were recognized on Trademarks, Software and Customer relationship intangible assets for the year ended December 31, 2024 (see Note 9). No impairment charges were recognized for the years ended December 31, 2023 and 2022.
Estimated amortization expense for the subsequent five years and thereafter is as follows:
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, the amortization expense for the year ended December 31, 2024, was $40,358. The amortization expense for the years ended December 31, 2023 and 2022, were $42,723 and $38,223, respectively. Additionally, impairment charges of $6,121 were recognized on Trademarks, Software, and Customer relationship intangible assets for the year ended December 31, 2024. No impairment charges were recognized for the years ended December 31, 2023 and 2022.
The FDD states that estimated amortization expense for the subsequent five years and thereafter is as follows, but it does not provide the actual estimates.
As a prospective franchisee, it is important to understand the estimated amortization expense for the next five years, including 2025, to accurately forecast your potential earnings and financial obligations. Amortization is the process of writing off the initial cost of an intangible asset over its useful life. This expense can impact the profitability of a Benjamin Franklin Plumbing franchise.
To gain a clearer understanding, a prospective franchisee should ask Benjamin Franklin Plumbing for the specific estimated amortization expenses for each of the next five years. This information will help in making an informed decision about investing in the franchise.