What was the gross amount of franchise relationships for Benjamin Franklin Plumbing as of December 31, 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Accumulated Estimated Amortization | ||||||||
| Useful Life | Gross Amount | and Impairment | Net Amount | Remaining Useful Life | ||||
| Trademarks(1) | 15-25 years | $ | 178,010 | $ | 36,252 | $ | 141,758 | 20.1 |
| Franchise relationships | 15 years | 351,207 | 132,778 | 218,429 | 9.4 | |||
| Software(2) | 10 years | 7,500 | 6,356 | 1,144 | 0.3 | |||
| Proprietary processes | 10 years | 2,449 | 1,378 | 1,071 | 4.6 | |||
| Noncompetition agreements | 5 years | 701 | 583 | 118 | 1.6 | |||
| Intangible assets, net | $ | 539,867 | $ | 177,347 | $ | 362,520 |
- (1) Trademark impairment was $456.
- *(2) Software i
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, as of December 31, 2023, the gross amount of franchise relationships for Benjamin Franklin Plumbing is $353,475. This figure represents the initial investment the franchisor made to establish its franchise network. It is an intangible asset on the franchisor's balance sheet.
This gross amount is subject to amortization, which is the process of gradually writing off the initial cost over the estimated useful life of the franchise relationships. The accumulated amortization for Benjamin Franklin Plumbing's franchise relationships as of the same date was $110,374. The net amount, which is the gross amount less accumulated amortization, was $243,101.
The estimated useful life of these franchise relationships is 15 years, and the weighted average remaining useful life was 10.6 years. This information is relevant to potential franchisees as it provides insight into the financial management and valuation of the franchise system's intangible assets. It also reflects the franchisor's ongoing investment in maintaining and supporting its franchise network.