What was the net amount of intangible assets for Benjamin Franklin Plumbing as of December 31, 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | Accumulated Estimated Amortization | | | | | | | | | Useful Life | | Gross Amount | | and Impairment | | Net Amount | Remaining Useful Life | | Trademarks(1) | 15-25 years | $ | 178,010 | $ | 36,252 | $ | 141,758 | 20.1 | | Franchise relationships | 15 years | | 351,207 | | 132,778 | | 218,429 | 9.4 | | Software(2) | 10 years | | 7,500 | | 6,356 | | 1,144 | 0.3 | | Proprietary processes | 10 years | | 2,449 | | 1,378 | | 1,071 | 4.6 | | Noncompetition agreements | 5 years | | 701 | | 583 | | 118 | 1.6 | | Intangible assets, net | | $ | 539,867 | $ | 177,347 | $ | 362,520 | |
- (1) Trademark impairment was $456.
- (2) Software impairment was $2,544.
| 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 net amount of intangible assets as of December 31, 2023, was $396,713. These intangible assets are comprised of trademarks, franchise relationships, software, proprietary processes, and noncompetition agreements. These assets are amortized over their useful lives, which range from 5 to 25 years depending on the asset type.
Specifically, the breakdown of the $396,713 in net intangible assets includes trademarks valued at $149,325, franchise relationships at $241,843, software at $4,000, proprietary processes at $1,316, and noncompetition agreements at $229. The franchise relationships constitute the largest portion of the intangible assets. These figures represent the value of these assets after accumulated amortization has been subtracted from their gross amounts.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the nature and value of these intangible assets is crucial. These assets, particularly trademarks and franchise relationships, contribute significantly to the brand's recognition and market position. The amortization of these assets over time reflects their diminishing value, which is a standard accounting practice. Reviewing the breakdown and useful lives of these intangible assets can provide insights into the long-term value and sustainability of the Benjamin Franklin Plumbing franchise.