Over what period does Amerispec Inspection Services amortize goodwill?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the company amortizes goodwill on a straight-line basis over a period of 10 years. Goodwill is tested for impairment at the entity level, but only when a triggering event occurs or circumstances change that suggest the fair value of the entity may be less than its carrying value. As of December 31, 2024, and 2023, no impairment indicators existed.

For a prospective Amerispec Inspection Services franchisee, this means that any goodwill recognized in connection with the acquisition of the franchise will be systematically expensed over a 10-year period for accounting purposes. This amortization expense can impact the franchisee's reported profitability during those years. The impairment testing indicates that Amerispec Inspection Services monitors the value of its goodwill and will adjust its value if circumstances suggest it has declined.

Additionally, the FDD states that amortization expense of goodwill was approximately $1,225,000 and $833,000 during the year ended December 31, 2024, and period ended December 31, 2023, respectively. Future amortization of goodwill is expected to be approximately $1,570,000 per year for the next five years. This information is relevant to understanding the company's overall financial management and how goodwill is treated in their financial statements.