What was the reported purchase price for Benjamin Franklin Plumbing in 2022?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
their estimated fair values as follows:
| Current assets | $ 3,139 |
|---|---|
| Operating lease right-of-use assets | 1,115 |
| Property and equipment | 716 |
| Goodwill | 49,394 |
| Intangible assets and other assets (1) | 38,055 |
| Deferred tax assets | 458 |
| Assets acquired | 92,877 |
| Operating lease liabilities | (1,115) |
| Deferred revenue | (8,089) |
| Other liabilities assumed | (4,471) |
| Purchase Price | $ 79,202 |
(1) Identifiable intangible assets acquired include referral relationships, trademarks, franchise relationships and non-competition agreements which will be amortized on a straight-line basis over their preliminary useful lives of 15 years, 25 years, 15 years and 1 years, respectively.
DRYmedic
On November 4, 2022, the Company entered into a purchase and sale agreement to acquire 100% of the outstanding equity interests of DRYmedic Restoration Services, LLC and its subsidiaries for a purchase price of $45,556. DRYmedic provides disaster restoration services with a focus on water damage restoration, fire damage repair and mold removal and has been acquired to allow for the expansion of the Company's presence within its home services franchising platform. The acquisition was funded with rollover equity of $18,984 and borrowings from the Company's 2022 A-1 loan. Goodwill largely consists of strategic and synergistic opportun
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing's parent company acquired DRYmedic Restoration Services, LLC in November 2022 for $45,556. This acquisition was made to expand the company's presence in the home services franchising platform. The purchase was funded through a combination of rollover equity amounting to $18,984 and borrowings from the company's 2022 A-1 loan.
Goodwill from the DRYmedic acquisition is considered tax deductible and mainly consists of strategic and synergistic opportunities expected from combining DRYmedic with the company's existing businesses. Transaction costs of $1,077 were incurred and expensed as a result of the transaction.
The company accounted for the acquisition as a business combination, assigning fair values to tangible and identifiable intangible assets and liabilities based on available information as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as goodwill. During the year ended December 31, 2023, there were no material changes to the purchase price allocation for the DRYmedic Acquisition.