What was the net value of Benjamin Franklin Plumbing's intangible assets 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, 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 pay |
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 value of its intangible assets as of December 31, 2023, was $437,885. Intangible assets are non-physical assets that have a monetary value, such as trademarks, franchise agreements, and goodwill. The net value represents the original cost of these assets less any accumulated amortization (the systematic reduction of an intangible asset's value over its useful life). This figure provides insight into the financial value of the brand's intellectual property and established business relationships.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the value and composition of these intangible assets is crucial. A significant portion of this value may be tied to the strength and recognition of the Benjamin Franklin Plumbing brand name, which can directly impact a franchisee's ability to attract customers. Additionally, the franchise relationships included within intangible assets reflect the agreements and networks that support the franchise system.
The amortization of intangible assets is a standard accounting practice, reflecting the gradual decline in value of these assets over time. The FDD also lists the gross amount of intangible assets before amortization, which was not provided in the available excerpts. Reviewing the types of intangible assets Benjamin Franklin Plumbing holds and their useful lives can help a franchisee assess the long-term value and potential risks associated with these assets.
It's important to note that these figures are based on the company's accounting practices and may not directly translate into immediate cash value for a franchisee. However, they do offer a perspective on the overall financial health and stability of Benjamin Franklin Plumbing, as well as the potential value of its brand and business model.