For Benjamin Franklin Plumbing, what was the revenue from the Parent company in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
ented. Centralized payment arrangements, to the extent not settled, are reflected as due to Guarantor on the consolidated balance sheets. As of December 31, 2024 and 2023, there are no amounts due to Guarantor but rather, for the years ended December 31, 2024, 2023 and 2022, the Company made periodic distributions in excess of the amounts due to Guarantor. Net distributions in the amount of $73,049, $68,651 and $69,644 are reflected in the consolidated statements of changes in member's equity as distribution to Guarantor for the years ended December 31, 2024, 2023 and 2022, respectively.
Parent provides a variety of services to the Company. The consolidated statements of operations include direct expenses, such as compensation and benefits for employees of the Company, that would have been incurred in the ordinary course of business if the Company had operated as a stand-alone company. Such direct expenses were included based on specific identification and are reflected primarily in franchise support expenses. The consolidated statements of operations also include expense allocations for services and certain support functions that are provided on a centralized basis by Parent such as legal, business development, human resources, corporate accounting and finance, treasury and various other Parent corporate functions. These parent expenses are allocated by either specific identification or based on revenue of the Company relative to the Parent's other subsidiaries and are reflected in the consolidated
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 revenue of the Parent company in 2024. However, it does mention expense allocations from the Parent to the Company. In 2024, the Parent allocated $11,931 in general and administrative expenses and $1,848 in stock-based compensation expense to the Company. Of the stock-based compensation, $1,113 was specifically identified by unit holder, and $735 was allocated based on revenue.
These allocations are important for prospective franchisees to understand because they reflect the costs that Benjamin Franklin Plumbing incurs for centralized services provided by its Parent company. These services include legal, business development, human resources, corporate accounting and finance, treasury, and other corporate functions. The expenses are allocated either through specific identification or based on the Company's revenue relative to the Parent's other subsidiaries.
It is important to note that these figures represent expense allocations, not revenue. To determine the Parent company's actual revenue, a prospective franchisee should consult the complete financial statements or request this information directly from the franchisor. Understanding the Parent company's financial performance can provide additional insight into the overall stability and resources available to support the Benjamin Franklin Plumbing franchise system.