What was the depreciation and amortization expense for Alloy for the year ended December 31, 2024?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
tions and reasonable and supportable forecasts of future economic conditions.
NOTE 6. PROPERTY AND EQUIPMENT
Property and equ
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the depreciation and amortization expense for the year ending December 31, 2024, was $14,055. In comparison, the depreciation and amortization expense for the year ending December 31, 2023, was $4,541.
Depreciation and amortization are accounting methods used to allocate the cost of tangible (depreciation) and intangible (amortization) assets over their useful lives. For franchisees, these expenses can impact the profitability of the business, as they represent a non-cash expense that reduces net income. Understanding these figures helps potential franchisees assess the financial health and stability of Alloy.
The increase in depreciation and amortization expense from 2023 to 2024 could be due to several factors, such as the acquisition of new assets or changes in accounting policies. Prospective franchisees may want to inquire about the specific assets being depreciated or amortized and the methods used to calculate these expenses to gain a better understanding of their impact on Alloy's financial statements.