What is the net amount of intangible assets for Benjamin Franklin Plumbing as of December 31, 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
ficant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
April 2, 2025
Authority Brands Inc. and Subsidiaries Consolidated Balance Sheets (In thousands)
| As of December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ | 46,193 | $ | 27,119 |
| Restricted cash | 5,631 | 3,314 | ||
| Accounts receivable, net | 34,962 | 33,238 | ||
| Inventory, net | 7,201 | 6,548 | ||
| Prepaid expenses and other current assets | 9,227 | 12,575 | ||
| Total current assets | 103,214 | 82,794 | ||
| Property and equipment, net | 34,635 | 56,407 | ||
| Operating lease right-of-use assets | 13,787 | 15,144 | ||
| Intangible assets, net | 390,904 | 437,885 | ||
| Goodwill, net | 357,205 | 414,349 | ||
| Other assets | 15,968 | 14,422 | ||
| Total assets | $ | 915,713 | $ | 1,021,001 |
| Liabilities and Stockholder's Equity | ||||
| Current liabilities | ||||
| Accounts payable | $ | 6,803 | $ | 9,980 |
| Accrued and other liabilities | 38,396 | 27,562 | ||
| Deferred revenue | 15,748 | 17,189 | ||
| Operating lease liabilities, current portion | 4,193 | 5,070 | ||
| Current maturities on long-term debt | 4,250 | 4,250 | ||
| Total current liabilities | 69,390 | 64,051 | ||
| Operating lease liabilities, non-current portion | 10,396 | 11,077 | ||
| Long-term debt, net | 551,538 | 550,949 | ||
| Deferred tax liability, net | 5,577 | 17,766 | ||
| Other long-term liabilities | 42,175 | 38,957 | ||
| Total liabilities | 679,076 | 682,800 | ||
| Stockholder's equity | 236,637 | 338,201 | ||
| Total liabilities and stockholder's equity | $ | 915,713 | $ | 1,021,001 |
**Authority Brands Inc.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing's intangible assets, net, totaled $390,904 as of December 31, 2024. This figure represents the value of assets that are not physical, such as trademarks, franchise agreements, and proprietary processes, after accounting for accumulated amortization and impairment. In comparison, the net intangible assets as of December 31, 2023, were $437,885.
Breaking down the intangible assets in more detail, the FDD provides a breakdown of specific categories. Trademarks had a net amount of $142,305, franchise relationships were valued at $219,351, software at $1,144, proprietary processes at $1,071, and noncompetition agreements at $489. These values are calculated by subtracting accumulated amortization and impairment from the gross amount of each asset. For example, trademarks had a gross amount of $179,232, accumulated amortization of $35,973, and impairment of $954, resulting in the net value of $142,305.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the composition and valuation of these intangible assets is crucial. These assets, particularly trademarks and franchise relationships, are key to the brand's identity and market position. The amortization schedules also provide insight into how the value of these assets is recognized over time. Reviewing these figures can help a franchisee assess the long-term value and sustainability of the franchise opportunity. The FDD also notes that long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.