What was the total amount of franchise support expenses for Benjamin Franklin Plumbing in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, | As revised | 2022 | As Previously Reported | Adjustments | As Revised | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| As Previously Reported | 2023 Adjustments | As revised | 2022 | As Previously Reported | Adjustments | As Revised | |||||
| Franchise support expenses | 125,437 | (10,514) | 114,923 | $ | 101,662 | $ | (9,493) | $ | 92,169 |
The Company recognized $1,770, $1,810 and $675 of commission costs in franchise support expenses on the consolidated statements of operations for the years ended December 31, 2024, 2023 and 2022, respectively.
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 support expenses for the year 2023 were initially reported as $125,437. However, after adjustments of ($10,514), the revised franchise support expenses totaled $114,923.
Franchise support expenses are costs incurred by Benjamin Franklin Plumbing to support its franchise system. These expenses can include items such as training, marketing, and operational support provided to franchisees. Understanding these expenses can give a potential franchisee insight into how Benjamin Franklin Plumbing invests in its franchisees.
The FDD also notes that the company recognized $1,810 of commission costs in franchise support expenses for the year ended December 31, 2023. These commission costs are associated with commissions paid to brokers for obtaining new franchise agreements. These costs are capitalized and amortized over the franchise agreement period.
It's important for prospective franchisees to understand the nature of these expenses and how they might impact the overall financial health and support system of the Benjamin Franklin Plumbing franchise. Reviewing these figures over multiple years, as presented in the FDD, can provide a more comprehensive understanding of the franchisor's financial trends and commitment to franchisee support.