What was the net value of Benjamin Franklin Plumbing's accounts receivable as of December 31, 2023?
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, sig
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 accounts receivable as of December 31, 2023, was $33,238. Accounts receivable represents the money owed to Benjamin Franklin Plumbing by its customers for services rendered but not yet paid. The 'net' value means this figure accounts for any deductions for potential uncollectible amounts. This is an important figure for prospective franchisees to consider, as it provides insight into the company's financial health and its ability to manage outstanding payments.
Accounts receivable is a crucial asset for any business, including a Benjamin Franklin Plumbing franchise. A higher accounts receivable balance could indicate strong sales, but it also carries the risk of potential bad debts if customers fail to pay. Therefore, understanding how Benjamin Franklin Plumbing manages its accounts receivable and allowance for doubtful accounts is essential for franchisees.
The FDD also details how Benjamin Franklin Plumbing handles doubtful accounts. The company pools accounts receivable balances based on similar risk characteristics and assesses credit risk based on historical experience, current economic conditions, and forecasts. Uncollectible accounts are written off against the allowance when collection appears doubtful. For the years ending December 31, 2024 and 2023, the allowance for doubtful accounts was $7,845 and $5,757, respectively. This indicates that Benjamin Franklin Plumbing actively manages and accounts for the risk of uncollectible receivables.