What was the reported deferred revenue for Benjamin Franklin Plumbing in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
inance lease obligations | 4,352 | 4,941 | | Other | 10,239 | 4,328 | | Total accrued and other liabilities | $ 38,396 | $ 27,562 |
12. Taxes
Income tax benefit consisted of the following for the years ended December 31, 2024, 2023 and 2022:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Current | |||
| Federal | $ - | $ - | $ - |
| State | 307 | 361 | 488 |
| Total current income tax expense | 307 | 361 | 488 |
| Deferred | |||
| Federal | (9,601) | (2,626) | (3,441) |
| State | (2,587) | (10,554) | (837) |
| Total deferred income tax benefit | (12,188) | (13,180) | (4,278) |
| Total income tax benefit | $ (11,881) | $ (12,819) | $ (3,790) |
Deferred income taxes consisted of the following as of December 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Deferred tax assets | ||
| Net operating losses and c |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the company's deferred revenue in 2023 was $8,684. This figure represents revenue that Benjamin Franklin Plumbing has earned but not yet recognized because the services related to that revenue have not yet been fully provided.
For a prospective franchisee, deferred revenue can be an important indicator of the company's financial stability and future revenue streams. A consistent or growing deferred revenue balance suggests that Benjamin Franklin Plumbing is successfully securing future business.
However, it is important to note that deferred revenue is not the same as cash in hand. Benjamin Franklin Plumbing has an obligation to provide services or fulfill other requirements before it can recognize this revenue on its income statement. Franchisees should consider this metric in conjunction with other financial data to gain a comprehensive understanding of the franchisor's financial health.