What was the net goodwill amount for Amerispec Inspection Services in 2023?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation expense was approximately $98,000 and $7,500 for the year ended December 31, 2024 and the period ended December 31, 2023, respectively.
Note 6. Goodwill and Intangible Assets, As Restated
The changes in the carrying value of goodwill consisted of the following as of December 31:
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |
|---|---|---|---|
| Beginning balance | $ - | $ - | $ - |
| Goodwill related to acquisitions of businesses | 11,090,844 | - | 11,090,844 |
| Amortization | - | (832,584) | (832,584) |
| Balance, December 31, 2023 | 1 |
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the net goodwill amount as of December 31, 2023, was $10,258,260. This figure represents the value of intangible assets like customer relationships and brand reputation after accounting for accumulated amortization.
Goodwill typically arises when a company acquires another business for a price exceeding the fair value of its identifiable net assets. In this case, the goodwill is related to acquisitions of businesses and is calculated according to Accounting Standards Codification (ASC) Topic 805, Business Combinations. This accounting standard guides the recognition and measurement of goodwill and intangible assets acquired in a business combination.
For a prospective Amerispec Inspection Services franchisee, understanding the goodwill figure provides insight into the financial health and acquisition strategy of the franchisor. It indicates the value Amerispec Inspection Services places on its brand and customer relationships. Additionally, the FDD states that goodwill is amortized, and tested for impairment only when a triggering event occurs, or circumstances change that indicate the fair value of the entity may be less than the carrying value. No impairment indicators exist as of December 31, 2024 and 2023.