What was the total cost and expenses for Benjamin Franklin Plumbing in the year with $36,565 net income?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Total revenues | 226,436 | 219,067 | 190,773 |
|---|---|---|---|
| Total costs and expenses | 241,110 | 211,120 | 154,393 |
| Interest income | 329 | 269 | 197 |
| Net (loss) income | $ (14,362) | $ 8,180 | $ 36,565 |
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, in the year the business had a net income of $36,565, the total costs and expenses amounted to $154,393. This figure represents the aggregate of all operational and overhead costs incurred during that specific year. Understanding these costs is crucial for prospective franchisees as it provides a benchmark for assessing the financial health and operational efficiency of a Benjamin Franklin Plumbing franchise.
Analyzing the relationship between total costs and expenses and net income helps potential franchisees evaluate the profitability and sustainability of the business model. A lower cost-to-income ratio generally indicates better management and efficient resource allocation, which can lead to higher profit margins. Conversely, higher costs relative to income may signal potential challenges in controlling expenses or generating sufficient revenue.
It is important for potential Benjamin Franklin Plumbing franchisees to conduct a thorough due diligence process, comparing these figures with industry averages and their own financial projections. This comparison can offer valuable insights into the potential risks and rewards associated with investing in a Benjamin Franklin Plumbing franchise. Furthermore, prospective franchisees should seek clarification from the franchisor regarding the specific components included in 'total costs and expenses' to gain a comprehensive understanding of the business's financial structure.