What was the total amount of Benjamin Franklin Plumbing's general and administrative expenses in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | | Long-term debt, net | | 551,538 | | 550,949 | | Deferred tax liability, net | | 5,577 | | 17,766 | | Other long-term liabilities | | 42,175 | | 38,957 | | Total liabilities | | 679,076 | | 682,800 | | Stockholder's equity | | 236,637 | | 338,201 | | Total liabilities and stockholder's equity | $ | 915,713 | $ | 1,021,001 |
Authority Brands Inc. and Subsidiaries Consolidated Statements of Comprehensive Loss (In thousands)
| Years Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Revenues | ||||
| Franchise service fees | $ 166,401 | $ | 159,766 | $ 143,344 |
| Franchise sales fees | 12,601 | 13,965 | 5,222 | |
| Residential services | 215,263 | 211,880 | 186,266 | |
| Other revenues | 33,549 | 31,557 | 29,105 | |
| Total revenues | 427,814 | 417,168 | 363,937 | |
| Costs and expenses | ||||
| Franchise support expenses | 120,744 | 114,923 | 92,169 | |
| Franchise sales expenses | 6,286 | 5,125 | 2,355 | |
| Residential service expenses | 174,377 | 173,375 | 146,955 | |
| General and administrative expenses | 75,267 | 57,446 | 51,338 | |
| Stock-based compensation expenses | 2,922 | 6,006 | 21,820 | |
| Management fees and expenses | 539 | 500 | 345 | |
| Transaction costs | 15 | 4,149 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the company's general and administrative expenses for the year 2024 totaled $75,267. This figure is part of the broader 'Costs and expenses' category, which also includes franchise support expenses, franchise sales expenses, residential service expenses, stock-based compensation expenses, management fees and expenses, transaction costs, depreciation and amortization, impairment loss, and loss on sale of retail. These expenses are subtracted from the total revenues to determine the operating loss for the year.
For a prospective franchisee, understanding the general and administrative expenses is crucial as it provides insight into the overhead costs associated with running the Benjamin Franklin Plumbing franchise system. These expenses, along with other costs, contribute to the overall financial health and profitability of the company, which can indirectly impact the support and services available to franchisees. A higher figure in general and administrative expenses compared to previous years could indicate increased investment in infrastructure or personnel, which may or may not translate to better support for franchisees.
It's important to note that while the FDD provides this historical data, future expenses may vary due to various factors such as economic conditions, changes in business strategy, and unforeseen circumstances. Therefore, prospective franchisees should carefully analyze these figures in conjunction with other financial data and market trends to assess the potential risks and rewards of investing in a Benjamin Franklin Plumbing franchise. They should also consider discussing these expenses with existing franchisees to gain a better understanding of how they impact day-to-day operations and profitability.