What was the value of intangible assets for Afuri Ramen Dumpling in the most recent year presented?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Intangible asset – Website development is stated at cost less accumulated amortization. Amortization is recorded using the straight-line method over the estimated useful lives of the respective assets (3 years). The intangible asset was not placed in service as of December 31, 2021, thus there was no accumulated amortization at December 31, 2021.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
Based on the 2024 FDD, the intangible asset for Afuri Ramen Dumpling relates to website development, which is recorded at cost less accumulated amortization. Amortization is calculated using the straight-line method over an estimated useful life of three years. As of December 31, 2021, the intangible asset had not yet been placed in service, so there was no accumulated amortization reported at that time.
However, the excerpt does not provide the specific value of the intangible assets (website development costs) for the most recent year presented, which is December 31, 2023. The note only confirms the accounting policy and the status as of December 31, 2021.
A prospective Afuri Ramen Dumpling franchisee should inquire with the franchisor about the value of intangible assets, specifically website development costs, as of December 31, 2023, to understand the company's asset valuation and amortization schedule. This information would be helpful in assessing the company's financial health and accounting practices.