What was the net loss reported for Benjamin Franklin Plumbing as of December 31, 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
ber's Equity | | | | | | | Current liabilities | | | | | | | Accounts payable | $ | 1,225 $ | 1,425 | | | | Accrued and other liabilities | | 12,881 | 9,547 | | | | Deferred revenue | | 9,955 | 9,952 | | | | Total current liabilities | | 24,061 | 20,924 | | | | Other long-term liabilities | | 30,352 | 28,004 | | | | Total liabilities | | 54,413 | 48,928 | | | | Member's equity | | 611,628 | 697,191 | | | | Total liabilities and member's equity | $ | 666,041 $ | 746,119 | | |
AB Assetco LLC and Subsidiaries Consolidated Statements of Operations (In thousands)
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Revenues | |||||
| Franchise service fees | $ 178,979 | $ 172,290 | $ | 154,607 | |
| Franchise sales fees | 11,574 | 12,947 | 5,045 | ||
| Other revenues | 35,883 | 33,830 | 31,121 | ||
| Total revenues | 226,436 | 219,067 | 190,773 | ||
| Costs and expenses | |||||
| Franchise support expenses | 116,616 | 114,910 | 92,890 | ||
| Fran |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing reported a net loss of $14,362 as of December 31, 2024. This figure reflects the company's financial performance for the specified period, taking into account all revenues, expenses, and other financial adjustments. This net loss is a critical indicator of the company's profitability and overall financial health during that year.
For a prospective Benjamin Franklin Plumbing franchisee, this information is essential for evaluating the financial stability and potential risks associated with investing in the franchise. A net loss suggests that the company's expenses exceeded its revenues during the year, which could impact its ability to support franchisees or invest in growth initiatives. It is important to consider this figure in the context of the company's historical performance and future projections.
It is also useful to compare this net loss with the company's performance in previous years. In 2023, Benjamin Franklin Plumbing reported a net income of $8,180, and in 2022, the net income was $36,565. The fluctuation in net income/loss over these three years could indicate changes in the company's business strategies, market conditions, or operational efficiency. A prospective franchisee should investigate the reasons behind these changes to assess the potential for future profitability and stability.
Overall, while the net loss for 2024 is a point of concern, it is crucial to analyze it in conjunction with other financial data and qualitative factors to gain a comprehensive understanding of the franchise's financial health and potential for success. Prospective franchisees should seek clarification from Benjamin Franklin Plumbing regarding the factors contributing to the net loss and the strategies being implemented to improve profitability.