What was the net amount of trademarks for Benjamin Franklin Plumbing as of December 31, 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
ong-term assets consisted of the following as of December 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Cost to obtain contracts - commissions | $ 12,104 | $ 10,729 |
| Prepaid customer incentive payments | 532 | 744 |
| Other | 129 | 467 |
| Total other long-term assets | $ 12,765 | $ 11,940 |
AB Assetco LLC and Subsidiaries Notes to Consolidated Financial Statements (in thousands of dollars)
Years Ended December 31, 2024, 2023 and 2022
8. Intangible Assets and Goodwill
Intangible Assets, Net
Intangible assets consisted of the following as of December 31, 2024 and 2023
| As of December 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Estimated | Accumulated | Weighted Average Remaining | ||||||
| Useful Life | Gross Amount | Amortization | Net Amount | Useful Life | ||||
| Trademarks | 15-25 years | $ | 178,010 | $ | 28,685 | $ | 149,325 | 20.3 |
| Franchise relationships | 15 years | 351,207 | 109,364 | 241,843 | 10.3 | |||
| Software | 10 years | 7,500 | 3,500 | 4,000 | 5.3 | |||
| Proprietary processes | 10 years | 2,449 | 1,133 | 1,316 | 4.7 | |||
| Noncompetition agreements |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, as of December 31, 2024, the net amount of trademarks for Benjamin Franklin Plumbing was $142,305. This figure represents the initial gross amount of the trademarks ($179,232) less accumulated amortization ($35,973) and impairment ($954). The estimated useful life of the trademarks is between 15 to 25 years, and the weighted average remaining useful life is approximately 20.1 years.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the value and lifespan of these trademarks is crucial. Trademarks are a significant asset for any franchise, as they represent brand recognition and customer loyalty. The net amount reflects the current book value of these trademarks, which can influence the overall financial health and valuation of the franchise system.
The fact that the trademarks have a remaining useful life of approximately 20.1 years suggests that Benjamin Franklin Plumbing is committed to maintaining and protecting its brand identity for the long term. This can provide reassurance to franchisees that the franchisor is invested in the ongoing success and recognition of the brand. Moreover, the consistent amortization indicates that the trademarks are actively being used and contributing to the franchise's operations.
It is important for potential franchisees to inquire about the franchisor's strategy for managing and updating these trademarks. Understanding how the franchisor plans to protect and enhance the value of the trademarks can help franchisees assess the long-term potential and stability of the Benjamin Franklin Plumbing franchise.