What is the significance of the 'HELOC Transaction' regarding the financial statements of Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
nd legally contributed the assets and liabilities of Junkluggers Franchising, LLC to the Company.
The following table summarizes the historical carrying values of the assets and liabilities contributed to the Company on December 31, 2022.
| Cash | $ 179 |
|---|---|
| Accounts receivables | 399 |
| Prepaid expenses and other current assets | 103 |
| Goodwill | 42,913 |
| Intangible assets, net | 36,898 |
| Deferred revenue | (8,089) |
| Other current liabilities | (1,405) |
| Total contribution to AB Assetco | $ 70,998 |
DRYmedic
On November 4, 2022, the Parent entered into a purchase and sale agreement to acquire 100% of the outstanding equity interests of DRYmedic Restoration Services, LLC and its subsidiaries. Subsequent to the acquisition, on November 22, 2022, the Parent legally contributed the trademark of DRYmedic to STOP Franchisor with fair value of $4,745.
3. Summary of Significant Accounting Policies
Financial Statement Preparation and Principles of Consolidation
The accompanying conso
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, there is no mention of a 'HELOC Transaction' within the provided excerpts related to Benjamin Franklin Plumbing. Therefore, the significance of a HELOC transaction cannot be determined from the given information.
However, the FDD does include information regarding the financial statements of DRYmedic, which was acquired by the Parent company on November 4, 2022. Subsequent to the acquisition, the Parent legally contributed the trademark of DRYmedic to STOP Franchisor with a fair value of $4,745 on November 22, 2022. The consolidated financial statements of the company have been prepared in accordance with generally accepted accounting principles and practices of the United States of America (GAAP). The consolidated financial statements are presented for the years ended December 31, 2024, 2023 and 2022 due to the Securitization Transaction.
To understand the financial health and obligations of Benjamin Franklin Plumbing, a prospective franchisee should request clarification from the franchisor regarding any potential HELOC transactions, their impact on the company's financial statements, and how these transactions might affect the franchisee's business. Further investigation into the financial practices of the Parent company and its subsidiaries could also provide valuable insights.