How much did Benjamin Franklin Plumbing accrue for advertising expenses as of December 31, 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
date based on an award's fair value as calculated by an options pricing model. Compensation expense is recognized using the graded vesting attribution method over the requisite service period of five years and is included in stock-based compensation expense on the consolidated statements of operations. The Company made a policy election to recognize forfeitures as they occur.
The Company recognized stock-based compensation expense related to the settlement of the awards issued under the 2018 Plan and the Class A-2 Unit awards in connection with the HELOC Transaction. Refer to Note 11 for further details.
Advertising Costs
The Company administers the NAF funded by the franchisees for which the associated revenue is recognized in franchise service fees on the consolidated statements of operations. The NAF pays for costs of preparing and producing various advertising and
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 distinguishes between NAF (National Advertising Fund) and non-NAF advertising expenses. The NAF advertising expenses for the year ended December 31, 2023, totaled $15,547. These expenses cover the costs of preparing and producing advertising and marketing materials for franchisees, with the revenue recognized as franchise service fees. These expenses are included in franchise support expenses on the consolidated statements of operations.
In addition to NAF advertising expenses, Benjamin Franklin Plumbing also incurs non-NAF advertising expenses. For the year ended December 31, 2023, these expenses amounted to $3,151. These non-NAF expenses are recognized as incurred and are included in both franchise sales expense and franchise support expenses on the consolidated statements of operations.
Therefore, the total advertising expenses for Benjamin Franklin Plumbing, combining both NAF and non-NAF expenses, for the year ended December 31, 2023, was $18,698 ($15,547 + $3,151). This figure reflects the company's investment in marketing and advertising activities to support its franchisees and promote the brand.