What was the accumulated amortization deducted from 1 800 Packouts' intangible assets?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
anagement. The excess of the purchase price over the fair values of assets acquired and liabilities assumed was recorded as goodwill. The value of goodwill recognized in connection with the transactions can be attributed to a number of business factors including, but not limited to, the ability of the Company to grow given the additional capital and strategic expertise brought to the Company by the new ownership group.
Trade names were
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the accumulated amortization deducted from total intangible assets was $(13,111,503) as of December 31, 2023, and $(24,290,616) as of December 31, 2024. Intangible assets for 1 800 Packouts include trade names, franchise agreements, and goodwill. These figures represent the cumulative amount of amortization expense recognized against the value of these intangible assets over time.
For a prospective 1 800 Packouts franchisee, understanding accumulated amortization is crucial for assessing the net value of the franchisor's intangible assets. Amortization is the systematic reduction of the carrying value of an intangible asset over its useful life. A higher accumulated amortization indicates that a significant portion of the initial value of these assets has already been expensed.
This information is relevant to potential franchisees because it provides insight into the financial management and valuation of 1 800 Packouts' assets. While amortization is a non-cash expense, it impacts the company's reported earnings and book value. Monitoring these figures can help a franchisee understand how the franchisor values and manages its intangible assets, which are critical for brand recognition and market position.