For Benjamin Franklin Plumbing, what years are the accompanying consolidated financial statements presented for, due to the Securitization Transaction?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles and practices of the United States of America ("GAAP") and include the accounts of the Company and its wholly owned subsidiaries outlined in Note 1. All intercompany accounts and transactions have been eliminated in consolidation. There is no other comprehensive income, and net income equals comprehensive income. Due to the Securitization Transaction, the accompanying consolidated financial statements are presented for the years ended December 31, 2024, 2023 and 2022.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the consolidated financial statements are presented for the years ended December 31, 2024, 2023, and 2022. This is a direct result of the Securitization Transaction that AB Assetco LLC and its subsidiaries engaged in. Understanding these financial statements is crucial for prospective franchisees as they provide insights into the financial health and performance of the overall Benjamin Franklin Plumbing organization.
The Securitization Transaction itself, completed on May 14, 2021, involved the issuance of significant amounts of debt, including $5,000 in maximum principal amount Advance Funding Facility, $50,000 in maximum principal amount of Series 2021-1 Variable Funding Senior Notes, Class A-1, and $425,000 of Series 2021-1 3.734% Fixed Rate Senior Secured Notes, Class A-2. Additionally, on November 7, 2022, the Issuer completed an additional financing transaction resulting in the issuance of $200,000 in maximum principal amount of Series 2022-1 Variable Funding Senior Notes. These financial activities necessitate the presentation of consolidated financial statements for the specified years.
For a potential Benjamin Franklin Plumbing franchisee, reviewing these statements offers transparency into the company's financial obligations, including debt issuance costs and principal payment schedules. For instance, debt issuance costs related to undrawn amounts were $1,024 and $1,052 as of December 31, 2024 and 2023, respectively. Amortization of deferred financing costs amounted to $1,742, $1,676 and $1,692 for the years ended December 31, 2024, 2023 and 2022, respectively. Furthermore, the company expects to make principal payments on the Class A-2 Notes of $4,250 in the next year, as of December 31, 2024. This level of detail allows franchisees to assess the financial stability and future obligations of the franchisor, aiding in their investment decision.
Therefore, a prospective franchisee should carefully examine these consolidated financial statements and related notes to understand the financial structure and performance of Benjamin Franklin Plumbing. This includes analyzing the impact of the Securitization Transaction and other financial activities on the company's overall financial health. Consulting with a financial advisor to interpret these statements in the context of the franchise opportunity is highly recommended.