What was the total member's equity balance for Benjamin Franklin Plumbing as of December 31, 2022?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Revenues | |||||
| Franchise service fees | $ 178,979 | $ 172,290 | $ | 154,607 | |
| Franchise sales fees | 11,574 | 12,947 | 5,045 | ||
| Other revenues | 35,883 | 33,830 | 31,121 | ||
| Total revenues | 226,436 | 219,067 | 190,773 | ||
| Costs and expenses | |||||
| Franchise support expenses | 116,616 | 114,910 | 92,890 | ||
| Franchise sales expenses | 5,123 | 4,905 | 2,520 | ||
| General and administrative expenses | 34,186 | 23,962 | 23,692 | ||
| Stock-based compensation expenses | 1,848 | 3,817 | 4,409 | ||
| Depreciation and amortization | 65,562 | 63,526 | 30,882 | ||
| Impairment loss | 17,775 | - | - | ||
| Total costs and expenses | 241,110 | 211,120 | 154,393 | ||
| Operating (loss) income | (14,674) | 7,947 | 36,380 | ||
| Interest income | 329 | 269 | 197 | ||
| Interest expense, net | (17) | (36) | (12) | ||
| Net (loss) inco |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the member's equity balance as of December 31, 2022, was $735,930. This figure represents the accumulated capital within the company attributable to its members or owners at that specific point in time. It reflects the net assets of the company after deducting all liabilities.
Several factors contributed to the change in member's equity during the year. These include contributions of assets and liabilities amounting to $75,743, stock-based compensation of $4,409, a distribution to the guarantor of $(69,644), and net income of $36,565. These individual line items explain the movement in equity during the 2022 fiscal year, ultimately resulting in the final balance of $735,930.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the member's equity is crucial as it provides insight into the financial stability and overall health of the company. A strong equity position generally indicates a more financially sound franchisor, which can be a positive indicator for potential franchisees. However, it's important to consider these figures in conjunction with other financial metrics and information provided in the FDD to gain a comprehensive understanding of the franchise's financial standing.