What was the total deferred tax liability for Benjamin Franklin Plumbing in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Deferred tax liabilities | ||
| Intangibles | (38,368) | (43,449) |
| Goodwill | (16,740) | (19,409) |
| Operating lease right-of-use asset | (3,291) | (3,778) |
| Property and equipment | (5,553) | (11,345) |
| Other | (26) | (39) |
| Gross deferred tax liability | (63,978) | (78,020) |
| Total deferred tax liability | $ (5,577) | $ (17,766) |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the total deferred tax liability for the company in 2024 was approximately $(5,577). This figure represents the net result of various deferred tax liabilities, including those related to intangibles, goodwill, operating lease right-of-use assets, and property and equipment. Deferred tax liabilities arise from temporary differences between the accounting treatment and tax treatment of certain assets and liabilities.
Specifically, the gross deferred tax liability for Benjamin Franklin Plumbing in 2024 amounted to $(63,978). This total is calculated from individual liabilities such as intangibles ($(38,368)), goodwill ($(16,740)), operating lease right-of-use asset ($(3,291)), property and equipment ($(5,553)), and other ($(26)). These figures indicate the future tax obligations that Benjamin Franklin Plumbing has deferred due to these temporary differences.
For a prospective franchisee, understanding these deferred tax implications is crucial for assessing the overall financial health and stability of Benjamin Franklin Plumbing. While deferred tax liabilities are not immediate cash obligations, they represent future tax obligations that could impact the company's profitability and cash flow. Reviewing these figures in the FDD can provide valuable insights into the company's financial management and tax planning strategies.