How did Benjamin Franklin Plumbing's parent company fund the acquisition of Weed Pro?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
itions, the purchase price was allocated to the assets acquired and liabilities assumed at cost. As such, no goodwill was recognized. The purchase price was allocated as follows:
| 2023 | 2022 | |
|---|---|---|
| Assets acquired | ||
| Current assets | $ - | $ 145 |
| Property and equipment | 102 | 270 |
| Intangible assets and other assets | 223 | 1,243 |
| Assets acquired | 325 | 1,658 |
| Other liabilities assumed | - | (88) |
| Purchase price | $ 325 | $ 1,570 |
The acquired intangible assets had a preliminary useful life of 4 years.
As a result of the above transactions, the Company did not incur significant transaction costs during the years ended December 31, 2023 and 2022.
Business Combinations
WeedPro
On March 31, 2023, the Company entered into a purchase and sale agreement to acquire 100% of the outstanding equity intere
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing's parent company, Authority Brands, acquired Weed Pro, Ltd. on March 31, 2023. The acquisition was funded through a combination of $5,500 in rollover equity and borrowings from the company's 2022 A-1 loan. The purchase price for 100% of the outstanding equity interests of Weed Pro was $24,126.
Weed Pro provides lawn care services, including fertilization, weed control, aeration, and seeding. Authority Brands acquired Weed Pro to expand its presence within its home servicing franchising platform. The goodwill resulting from the acquisition is considered tax deductible, which may provide some financial benefits to the parent company.
For a prospective Benjamin Franklin Plumbing franchisee, this acquisition indicates Authority Brands' strategy of expanding its service offerings through acquisitions. It also shows that the parent company is willing to invest in related businesses to create synergistic opportunities. The FDD also states that the company incurred and expensed transaction costs of $845 as a result of the transaction.