What is the estimated amortization expense for Benjamin Franklin Plumbing in 2025?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
---|----|--------------|----|------------|----------------------------------| | | Estimated | | | | Accumulated | | | Weighted Average Remaining | | | Useful Life | | Gross Amount | | Amortization | | Net Amount | Useful Life | | Trademarks | 15-25 years | $ | 178,010 | $ | 28,685 | $ | 149,325 | 20.3 | | Franchise relationships | 15 years | | 351,207 | | 109,364 | | 241,843 | 10.3 | | Software | 10 years | | 7,500 | |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, the amortization expense for the year ending December 31, 2024, was $31,193. Amortization expenses for the years ending December 31, 2023 and 2022 were $31,641 and $29,076, respectively. Additionally, impairment charges of $3,000 were recognized on Trademarks and Software intangible assets for the year ended December 31, 2024.
The FDD states that estimated amortization expense for the subsequent five years and thereafter is as follows, but the actual estimates are not included in the provided excerpts.
As a prospective franchisee, it's important to understand the amortization expenses as they reflect the cost of intangible assets over time. Reviewing the complete amortization schedule in the FDD and understanding the types of intangible assets Benjamin Franklin Plumbing amortizes will provide a clearer picture of these ongoing expenses. You should ask the franchisor for the complete estimated amortization expense for the subsequent five years to make informed financial projections.