What was the reported value of prepaid advertising for Benjamin Franklin Plumbing in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
4. Inventory, net
Inventory consisted of the following as of December 31, 2024 and 2023:
| 2024 | |||||||
|---|---|---|---|---|---|---|---|
| Gross | Reserve | Net | |||||
| Products for sale | $ | 3,517 | $ | (439) | $ | 3,078 | |
| Materials | 2,829 | (48) | 2,781 | ||||
| Equipment | 1,387 | (45) | 1,342 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing reported a prepaid advertising value of $3,324 for the year 2023. This figure represents the amount the company had already paid for advertising services that had not yet been fully utilized or recognized as expenses on their financial statements at the end of that year.
For a prospective Benjamin Franklin Plumbing franchisee, this information provides insight into the company's financial practices related to advertising. Prepaid advertising can fluctuate based on marketing strategies and promotional activities. A higher prepaid amount could indicate a more aggressive advertising approach or bulk purchasing of advertising services to secure better rates.
It's important to note that prepaid advertising is an asset on the balance sheet, meaning it represents a future economic benefit. The prepaid advertising expenses are recognized over the period the advertising services are used. Reviewing these figures over multiple years can reveal trends in Benjamin Franklin Plumbing's advertising investments and how they align with revenue generation.