What was the total value of the current assets acquired in the Benjamin Franklin Plumbing acquisition?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer 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, the provided excerpts do not contain information about the value of current assets acquired specifically in the acquisition of Benjamin Franklin Plumbing. However, the FDD does detail the acquisition of other companies, such as Screenmobile, and provides a breakdown of assets acquired in that transaction.
For example, in the Screenmobile acquisition, the current assets acquired were valued at $443. The document also lists other assets acquired, such as operating lease right-of-use assets ($125), goodwill ($10,746), and intangible and other assets ($11,860), as well as liabilities assumed. This level of detail is provided for other acquisitions as well, like DRYmedic, Junkluggers, Woofie's, and Color World, but not for Benjamin Franklin Plumbing itself.
A prospective Benjamin Franklin Plumbing franchisee should ask the franchisor for specific details on the assets, liabilities, and purchase price allocation related to the Benjamin Franklin Plumbing acquisition. Understanding these details is crucial for assessing the financial implications and strategic rationale behind the acquisition, and how it might impact the franchise system.