What was the reported value of goodwill acquired by Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
e's Acquisition.
The Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as goodwill.
The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows:
| Current assets | $ 514 |
|---|---|
| Operating lease right-of-use assets | 989 |
| Property and equipment | 328 |
| Goodwill | 1,942 |
| Intangible assets and other assets (1) | 2,423 |
| Assets acquired | 6,196 |
| Operating lease liabilities | (989) |
| Other liabilities assumed | (164) |
| Purchase Price | $ 5,043 |
(1) Identifiable intangible assets acquired include customer relationships, trademarks and franchise relationships which will be amortized on a straight-line basis over their preliminary useful lives of 4 years, 25 years and 15 years, respectively.
Color World
On January 10, 2022, the Company entered into a purchase and sale agreement to acquire 100% of the assets of Color World Franchise Systems, LLC, and Color World Housepainting Inc. for a purchase price of $4,386. Color World is a paint service franchising company that has been acquired to allow for the expansion of the Company's presence within its home services franchising platform. The acquisition was funded with cash held by the Company. Goodwill largely consists of strategic and synergistic opportunities resulting from combining Color World with the Company's existing businesses. Goodwill related to this acquisition is expected to be deductible for income tax purposes.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Benjamin Franklin Plumbing does not explicitly state the value of goodwill acquired directly by Benjamin Franklin Plumbing. However, the document includes information about the parent company's acquisitions of other franchise systems. Specifically, it details the purchase prices and goodwill associated with acquisitions of DRYmedic, Junkluggers, and Screenmobile. These acquisitions were made by the parent company to expand its presence in the home services franchising platform. The goodwill from these acquisitions largely consists of strategic and synergistic opportunities resulting from combining the acquired companies with the parent company's existing businesses.
For example, in 2022, the parent company acquired DRYmedic for $45,556, funding the acquisition with rollover equity of $18,984 and borrowings. Similarly, in 2022, Junkluggers was acquired for $79,202, primarily funded with rollover equity of $16,000 and cash. In 2023, Screenmobile was acquired for $17,915, funded with rollover equity of $900 and borrowings. The FDD states that the parent company allocated the purchase price of each acquisition to identifiable assets and liabilities based on their estimated fair values, with the excess recorded as goodwill.
While the FDD provides details on these acquisitions and how goodwill was treated for accounting purposes, it does not offer specific figures for goodwill directly attributable to the Benjamin Franklin Plumbing brand. A prospective franchisee should consult directly with the franchisor to obtain specific financial details related to Benjamin Franklin Plumbing's goodwill and overall financial performance. Understanding the financial health and goodwill of the specific franchise system is crucial for making an informed investment decision.