How often does Benjamin Franklin Plumbing assess its inventory for slow-moving and obsolete items?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
ties, the payments are separated and classified as cash outflows from financing activities and operating activities. Cash payments up to the amount of the contingent consideration liability recognized at the acquisition date (including measurement-period adjustments) are classified as financing activities; any excess is classified as operating activities. The Company paid contingen
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing assesses its inventory for slow-moving and obsolete items on an annual basis. This means that at least once a year, the company reviews its stock of products, materials, and equipment to identify items that are not selling or are no longer usable.
This assessment is important for maintaining accurate financial records and ensuring that the company's assets are properly valued. By identifying and writing down the value of slow-moving or obsolete inventory, Benjamin Franklin Plumbing can avoid overstating its assets and can make informed decisions about purchasing and inventory management.
As of December 31, 2024, and 2023, Benjamin Franklin Plumbing had an inventory reserve of $531 and $472, respectively. These reserves represent the estimated amount of inventory that is expected to be slow-moving or obsolete. This practice is standard in the franchise industry, as it allows for a more accurate representation of a company's financial health.