What intangible assets were acquired in the Screenmobile acquisition by Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Identifiable intangible assets acquired include customer relationships and non-competition agreements which will be amortized on a straight-line basis over their preliminary useful lives of 4 and 5 years, respectively.
Screenmobile
On February 8, 2023, the Company entered into a purchase and sale agreement to acquire 100% of the outstanding equity interests of The Screenmobile Corporation for a purchase price of $17,915. Screenmobile is national mobile screen repair service. Screenmobile was acquired to allow for the expansion of the Company's presence within its home servicing franchising platform. The acquisition was funded with rollover equity of $900 and borrowings from the Company's 2022 A-1 loan. Goodwill largely consists of strategic and synergistic opportunities resulting from combining Screenmobile with the Company's existing business. The goodwill resulting from this acquisition is not expected to be tax deductible.
The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows:
Assets acquired Current assets $ 443 Operating lease right-of-use assets 125 Goodwill 10,746 Intangible assets and other assets (1) 11,860 Assets acquired 23,174 Deferred tax liability (2,343) Operating lease liabilities (125) Deferred revenue (2,652) Other liabilities assumed (139) Purchase Price $ 17,915
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, when Benjamin Franklin Plumbing acquired Screenmobile, several identifiable intangible assets were included in the purchase. These assets consist of customer relationships and non-competition agreements. These intangible assets are amortized on a straight-line basis, meaning their value is evenly expensed over their useful lives. The customer relationships are amortized over 4 years, while the non-competition agreements are amortized over 5 years.
For a prospective Benjamin Franklin Plumbing franchisee, this means that the value of Screenmobile's existing customer base and agreements preventing competition were factored into the acquisition. The allocation of these assets and their amortization schedules are important for financial reporting and can impact the overall profitability of the acquisition for Benjamin Franklin Plumbing.
It's important to note that goodwill, which represents the strategic and synergistic opportunities arising from the acquisition, was also a significant component of the purchase price allocation. However, the goodwill resulting from the Screenmobile acquisition is not expected to be tax deductible, which could have implications for Benjamin Franklin Plumbing's tax liabilities. The purchase price for Screenmobile was $17,915, with $11,860 allocated to intangible and other assets.