What was the net carrying amount of goodwill for Benjamin Franklin Plumbing at the beginning of 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
d for the years ended December 31, 2023 and 2022.
Estimated amortization expense for the subsequent five years and thereafter is as follows:
| 2025 | $ 31,115 |
|---|---|
| 2026 | 31,041 |
| 2027 | 31,038 |
| 2028 | 30,981 |
| 2029 | 30,680 |
| Thereafter | 207,665 $ 362,520 |
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 carrying amount of goodwill at the beginning of 2023 was $291,784. The document also indicates that beginning January 1, 2023, Benjamin Franklin Plumbing adopted a private company alternative accounting approach for goodwill, amortizing it on a straight-line basis over ten years.
Goodwill typically arises when a company acquires another business, representing the intangible assets that aren't separately identifiable, such as brand reputation or customer relationships. The fact that Benjamin Franklin Plumbing is amortizing goodwill means they are systematically reducing its value on their balance sheet over time, reflecting its estimated useful life. This accounting practice can affect the company's reported profits and asset values.
For a prospective franchisee, understanding goodwill and its amortization is important for assessing the financial health and stability of Benjamin Franklin Plumbing. While goodwill itself isn't a tangible asset that directly impacts day-to-day operations, it does reflect the company's past acquisitions and how they are being accounted for. Franchisees may want to inquire about the specific acquisitions that led to the goodwill and how the amortization schedule might affect future financial statements.