What was the gross amount of referral relationships for Benjamin Franklin Plumbing as of December 31, 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
,814 | 12.8 | | | Software(3) | 10 years | | 7,500 | | 3,812 | | 2,544 | | 1,144 | 0.3 | | | Customer relationships(4) | 4-5 years | | 46,843 | | 29,332 | | 1,781 | | 15,730 | 2.1 | | | Proprietary processes | 10 years/7 years | | 2,449 | | 1,378 | | - | | 1,071 | 4.6 | | | Noncompetition agreements | 5 years | | 2,000 | | 1,511 | | - | | 489 | 2.3 | | | Intangible assets, net | | $ | 604,125 | $ | 207,100 | $ | 6,121 | $ | 390,904 | | |
(1) Trademark impairment was $498 and $456 for Color World and Successware, respectively.
(4) Customer relationships impairment was $1,508 and $273 for DoodyCalls and Color World, respectively. Customer relationship loss on sale of retail was $1,636 and $1,134 on gross amount and accumulated amortization, respectively, for DoodyCalls.
| As of December 31, 2023 |
|---|
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the gross amount of referral relationships as of December 31, 2023, was $12,626. This figure represents the initial cost or value associated with acquiring or establishing these referral relationships for the Benjamin Franklin Plumbing franchise system. Referral relationships are amortized over a period of 15 years.
For a prospective Benjamin Franklin Plumbing franchisee, this information provides insight into the company's investment in building and maintaining referral networks. These relationships can be a valuable source of new customers and business opportunities. Understanding the value and lifespan of these relationships helps a franchisee assess the potential return on investment from the franchisor's existing networks.
The FDD also indicates that as of December 31, 2023, the accumulated amortization for referral relationships was $248, resulting in a net amount of $12,378. This shows that the referral relationships are still considered valuable assets with most of their initial value remaining. The weighted average remaining useful life of these relationships was 13.8 years, suggesting that they are relatively new and expected to continue providing benefits to the franchise system for a significant period.