What was the total value of prepaid expenses and other current assets for Benjamin Franklin Plumbing in 2024?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
ficant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
April 2, 2025
Authority Brands Inc. and Subsidiaries Consolidated Balance Sheets (In thousands)
| | As of December 31, | | | | |--------------------------------------------------
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 value of prepaid expenses and other current assets as of December 31, 2024, was $9,227. This figure is part of the company's broader financial statement, reflecting the value of short-term assets that have already been paid for, such as prepaid insurance, advertising, and other expenses, along with other current assets. These assets are expected to be used or converted into cash within one year.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the composition and value of these assets is crucial for assessing the company's short-term financial health and liquidity. Prepaid expenses represent future benefits that Benjamin Franklin Plumbing has already paid for, while other current assets can include items like short-term investments or recoverable deposits. A higher value in this category can indicate that the company has made strategic investments in its future operations or has a strong handle on its financial planning.
However, it's also important to consider the nature of these prepaid expenses and other current assets. For instance, a large portion of prepaid advertising might suggest an aggressive marketing strategy, while a significant amount in other current assets could indicate pending receivables or other financial arrangements. Franchisees should investigate the specific components of these assets to gain a more detailed understanding of their implications.
Ultimately, while the total value provides a snapshot of Benjamin Franklin Plumbing's financial position, prospective franchisees should conduct further due diligence to evaluate the quality and liquidity of these assets. This includes reviewing the company's balance sheets and related financial statements, as well as seeking professional financial advice to interpret these figures in the context of the overall franchise opportunity.