How much did Benjamin Franklin Plumbing pay in board fees to board members in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
services to the Company for the year ended December 31, 2023.
Board fees were paid to stockholders who provided services through membership on the Company board.
The Company also employs nineteen individuals as of December 31, 2024, twenty-six as of December 31, 2023 and twenty-seven as of December 31, 2022, who own and operate franchises of wholly owned subsidiary businesses. The Company recorded revenue and the corresponding accounts receivable related to these arrangements for the years ended December 31, 2024 and 2023, respectively. For the years ended December 31, 2024, 2023 and 2022, the Company paid rent expenses of $532, $587, 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 paid $350 in board fees to its board members in 2024. This information is part of a table detailing transactions with related parties through common ownership. The table also provides figures for board fees paid in 2023 ($250) and 2022 ($150), showing a year-over-year increase in these fees.
For a prospective franchisee, this indicates that Benjamin Franklin Plumbing has a formal board structure and allocates funds for board member compensation. While the specific amount is relatively small, it reflects the company's governance and financial practices. Understanding these related-party transactions can offer insights into the financial relationships and obligations of the franchisor.
It's important to note that these figures represent only the board fees and do not include any other potential compensation or benefits board members might receive. Reviewing these transactions over multiple years can help identify trends and assess the financial stability and management practices of Benjamin Franklin Plumbing. Franchisees should consider this information as part of their overall due diligence process to evaluate the financial health and transparency of the franchise system.