What was the impairment loss for Benjamin Franklin Plumbing in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
ggers | 10 years | | 49,394 | | 4,940 | | 44,454 | 9 years | | Weed Pro | 10 years | | 19,941 | | 1,496 | | 18,445 | 9.25 years | | Screenmobile | 10 years | | 10,746 | | 985 | | 9,761 | 9.08 years | | Other acquisitions(2) | 10 years | | 7,995 | | 799 | | 7,196 | 9 years | | Goodwill, net | | $ | 459,735 | $ | 45,386 | $ | 414,349 | |
The Company recognized $2,045 in goodwill impairment charges for Color World (see Note 9) and $0, during the years ended December 31, 2024 and 2023, respectively.
Estimated amortization expense for the subsequent five years and thereafter is as follows:
| 2025 | $ 44,577 |
|---|---|
| 2026 | 44,577 |
| 2027 | 44,577 |
| 2028 | 44,577 |
| 2029 | 44,577 |
| Thereafter | 134,320 $ 357,205 |
9. Impairment of Long-Lived Assets and Goodwill
The Company recognized impairment losses totaling $23,240, $0 and $0, during the years ended December 31, 2024, 2023 and 2022, respectively. The impairment losses recognized during 2024 were to write-down certain long-lived assets to their estimated fair value and were related to the following events.
Successware – Successware is a business management software solution the Company markets to its customers and is also utilized internally by the Company's retail locations and franchises. During 2024, the Company committed to a plan to sell the Successware software. The sale of the software is expected to close during 2025. As of December 31, 2024, the software is classified as an asset held and used as the Company will continue to use the software until a replacement system is fully implemented. The Company recognized an impairment loss totaling $17,775 on the consolidated statements of comprehensive loss which represented the difference between the carrying value of the software and its estimated fair value.
Color World – Color World is the Company's paint service business. During January 2024, the Company sold certain assets associated with the re
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the company recognized impairment losses totaling $23,240 during the year ended December 31, 2024. In 2023 and 2022, the company recognized $0 in impairment losses. These losses in 2024 were due to writing down certain long-lived assets to their estimated fair value, related to specific events involving Successware and Color World.
The impairment loss of $17,775 was related to Successware, a business management software solution. Benjamin Franklin Plumbing committed to a plan to sell the software and recognized the loss as the difference between the software's carrying value and its estimated fair value. The company will continue to use the software until a replacement system is fully implemented.
Another impairment loss of $3,957 was recognized due to the decision to abandon the Color World paint service business. This decision followed the sale of assets associated with the retail operations and the termination of franchise agreements. The assets impaired primarily related to goodwill, franchise relationships, and customer relationships intangible assets, which were written down to $0 as there was no residual value.