Where is the operating lease expense recognized in Benjamin Franklin Plumbing's consolidated statements?

According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, operating lease expenses are recognized as a component of general and administrative expenses within the consolidated statements of comprehensive loss. This means that when Benjamin Franklin Plumbing calculates its overall financial performance, the costs associated with leasing property or equipment are included under the broader category of general and administrative expenses.

For a prospective franchisee, this detail is relevant for understanding how lease expenses are accounted for in Benjamin Franklin Plumbing's financial reporting. It provides transparency into where these costs are categorized, which can be helpful when reviewing the company's financial statements and assessing its overall profitability. Additionally, the FDD specifies that there were no material short-term lease expenses for the years ended December 31, 2024, 2023 and 2022.

The document also clarifies that variable payments, such as those for common area maintenance, and operating expenses like real estate taxes and insurance, are excluded from lease right-of-use (ROU) assets and lease liabilities if they are not considered fixed. Instead, these costs are expensed as they are incurred. This distinction is important because it affects how different types of lease-related expenses are treated for accounting purposes, potentially impacting the franchisee's understanding of their financial obligations and the company's reported expenses.