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What was the total purchase price for Screenmobile acquired by Benjamin Franklin Plumbing?

Benjamin_Franklin_Plumbing Franchise · 2025 FDD

Answer from 2025 FDD Document

cated to the assets acquired and liabilities assumed based on their estimated fair values as follows:

Assets acquired

Current assets $ 914
Operating lease right-of-use assets 322
Property and equipment 840
Goodwill 19,941
Intangible assets and other assets (1) 5,499
Assets acquired 27,516
Operating lease liabilities (322)
Deferred revenue (1,989)
Other liabilities assumed (1,079)
Purchase Price $ 24,126

(1) Identifiable intangible assets acquired include customer relationships and non-competition agreements which will be amortized on a straight-line basis over their preliminary useful lives of 4 and 5 years, respectively.

Screenmobile

On February 8, 2023, the Company entered into a purchase and sale agreement to acquire 100% of the outstanding equity interests of The Screenmobile Corporation for a purchase price of $17,915. Screenmobile is national mobile screen repair service. Screenmobile was acquired to allow for the expansion of the Company's presence within its home servicing franchising platform. The acquisition was funded with rollover equity of $900 and borrowings from the Company's 2022 A-1 loan. Goodwill largely consists of strategic and synergistic opportunities resulting from combining Screenmobile with the Company's existing business. The goodwill resulting from this acquisition is not expected to be tax deductible.

As a result of the transaction, the Company incurred and expensed transaction costs of $1,052, which are included in transaction costs on the consolidated statements of comprehensive loss.

The Company accounted for the acquisition as a business combination pursuant to ASC 805. In accordance with ASC 805, fair values are assigned to tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date based on the information that was available as of the acquisition date. During the year ended December 31, 2024, there were no material

Source: Item 22 — CONTRACTS (FDD pages 87–88)

What This Means (2025 FDD)

According to the 2025 FDD, Benjamin Franklin Plumbing's parent company acquired The Screenmobile Corporation on February 8, 2023, for a total purchase price of $17,915. The acquisition was made to expand the company's presence within its home servicing franchising platform. The purchase was funded through a combination of rollover equity amounting to $900 and borrowings from the company's 2022 A-1 loan.

The company incurred transaction costs of $1,052 related to the Screenmobile acquisition, which were expensed and included in the consolidated statements of comprehensive loss. The FDD states that the acquisition was accounted for as a business combination, with fair values assigned to tangible and identifiable intangible assets and liabilities.

The purchase price allocation included current assets valued at $443, operating lease right-of-use assets at $125, goodwill at $10,746, and intangible and other assets at $11,860. Deferred tax liabilities were listed as $2,343, operating lease liabilities at $125, deferred revenue at $2,652, and other liabilities assumed at $139. The goodwill resulting from the acquisition is not expected to be tax deductible.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.