What was the total amount of Benjamin Franklin Plumbing's franchise service fees in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ | 46,193 | $ | 27,119 |
| Restricted cash | 5,631 | 3,314 | ||
| Accounts receivable, net | 34,962 | 33,238 | ||
| Inventory, net | 7,201 | 6,548 | ||
| Prepaid expenses and other current assets | 9,227 | 12,575 | ||
| Total current assets | 103,214 | 82,794 | ||
| Property and equipment, net | 34,635 | 56,407 | ||
| Operating lease right-of-use assets | 13,787 | 15,144 | ||
| Intangible assets, net | 390,904 | 437,885 | ||
| Goodwill, net | 357,205 | 414,349 | ||
| Other assets | 15,968 | 14,422 | ||
| Total assets | $ | 915,713 | $ | 1,021,001 |
| Liabilities and Stockholder's Equity | ||||
| Current liabilities | ||||
| Accounts payable | $ | 6,803 | $ | 9,980 |
| Accrued and other liabilities | 38,396 | 27,562 | ||
| Deferred revenue | 15,748 | 17,189 | ||
| Operating lease liabilities, current portion | 4,193 | 5,070 | ||
| Current maturities on long-term debt | 4,250 | 4,250 | ||
| Total current liabilities | 69,390 | 64,051 | ||
| Operating lease liabilities, non-current portion | 10,396 | 11,077 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the franchise service fees for the year 2024 totaled $166,401. This figure represents the revenue Benjamin Franklin Plumbing recognized from the ongoing fees paid by its franchisees for support and services provided throughout the year. Franchise service fees are a crucial revenue stream for the franchisor, as they reflect the value franchisees place on the franchisor's brand, operational systems, and ongoing assistance.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the franchisor's revenue streams can provide insights into the financial health and stability of the franchise system. The franchise service fees contribute to the franchisor's ability to invest in ongoing support, training, and marketing initiatives, which ultimately benefit the franchisees. Reviewing the trend of franchise service fees over the past three years, as presented in the FDD, can help potential franchisees assess the growth and consistency of this revenue stream.
It's important to note that while franchise service fees represent a significant portion of Benjamin Franklin Plumbing's revenue, they are not the only source. The franchisor also generates revenue from franchise sales fees, residential services, and other sources. A comprehensive understanding of all revenue streams and associated costs and expenses is essential for evaluating the overall financial performance of the Benjamin Franklin Plumbing franchise system.