What was the reported accumulated depreciation and amortization for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ber 29, 2024 | $ 17,776,440 |
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| December 29, 2024 | December 31, 2023 | December 25, 2022 | |
|---|---|---|---|
| Operating Activities | $ 18,388,782 | $ 1,560,891 | $ (2,563,076) |
| Net income (loss) | |||
| Adjustments to reconcile net income (loss) to net cash | |||
| provided by operating activities Depreciation and amortization Operating lease asset/liability Loss on disposal of software in development Gift card breakage | 55,238 12,550 693,200 (1,485,646) | 19,643 35,666 - - | 9,407 - - - |
| Changes in Accounts receivable Prepaid expenses and other current assets Accounts payable and accrued e |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the accumulated depreciation and amortization for the company was $84,288 as of December 29, 2024. In the previous years, the accumulated depreciation and amortization was $29,050 as of December 31, 2023, and $9,407 as of December 25, 2022.
Accumulated depreciation and amortization reflects the total amount of an asset's cost that has been expensed over its useful life. This accounting practice allows 7 Brew to spread the cost of assets like equipment and software over the periods they benefit the company, rather than expensing the entire cost in the year of purchase. This gives a more accurate picture of the company's profitability over time.
For a prospective franchisee, understanding accumulated depreciation and amortization can provide insights into the age and condition of 7 Brew's assets. While the franchisor does not directly provide assets to franchisees, this information can reflect the franchisor's investment in its own infrastructure and technology, which indirectly supports the franchise system. Reviewing these figures over several years can also reveal trends in 7 Brew's capital expenditures and asset management strategies.
It's important to note that these figures reflect the depreciation and amortization of assets owned by Brew Culture Franchise, LLC, and not the assets owned by individual franchisees. Franchisees will have their own depreciation schedules for assets they acquire for their 7 Brew stands. Franchisees should consult with a financial advisor to understand how depreciation and amortization will affect their own financial statements.