What was the value of notes receivable for Benjamin Franklin Plumbing in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
nts.
4. Inventory, Net
Inventory consisted of the following as of December 31, 2024 and 2023:
| 2024 | ||||||
|---|---|---|---|---|---|---|
| Gross | Reserve | Net | ||||
| Products for sale | $ | 3,517 | $ | (439) $ | 3,07 |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Benjamin Franklin Plumbing's notes receivable in 2023 was valued at $1,376, according to one table presented in Item 22. Another table in the same item shows the notes receivable as $1,550 for 2023.
Notes receivable represent the balance of money due to Benjamin Franklin Plumbing from its debtors. These are typically short-term assets, expected to be converted into cash within a year. For a prospective franchisee, understanding the notes receivable can provide insight into the company's lending practices and the financial health of its debtors.
The discrepancy in the value of notes receivable between the two tables could be due to different accounting methods, the scope of the data included, or other factors. It is important to clarify with the franchisor the reason for the difference in these figures to gain a clear understanding of the company's financial position.
Prospective franchisees should seek clarification from Benjamin Franklin Plumbing regarding the composition and collectability of these notes. Understanding the terms of these notes, such as interest rates and repayment schedules, is also crucial for assessing the overall financial risk and stability of the franchise system.