What was the expected life of options, in years, for Benjamin Franklin Plumbing in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Dividend Yield | 0% | 0% | 0% |
| Risk-free interest rate | 4.4% | 3.8% | 3.8% |
| Expected life of options | 4 years | 5 years | 5 years |
| Volatility | 45% | 47.5% | 47.5% |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the expected life of options in 2023 was 5 years. This figure is relevant to financial calculations, potentially impacting the valuation of certain contractual rights or investment opportunities associated with the franchise.
For a prospective franchisee, understanding the 'expected life of options' can be important in assessing the long-term financial implications of the franchise agreement. It may influence decisions related to investments, contract renewals, or potential exit strategies.
While the FDD provides this specific data point, it's essential for potential franchisees to discuss with Benjamin Franklin Plumbing how this figure is derived and how it might affect their individual franchise operations and financial planning. Consulting with a financial advisor is also recommended to fully understand the implications.