What is the estimated useful life, and method of amortization, that Anago uses for its intangible asset?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
The intangible asset, net consist of the trademark purchased in 2012. Management has estimated the useful live of the intangible asset acquired to be 10 years using the straight-line method of amortization.
Annually, management reviews the carrying value of these intangible assets to determine if there is any impairment. As of December 31, 2024, 2023, and 2022 management has determined that no impairment charge is necessary.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the company's intangible asset, which consists of a trademark purchased in 2012, has an estimated useful life of 10 years. Anago uses the straight-line method of amortization for this intangible asset.
For a prospective Anago franchisee, this means that the trademark's value is systematically reduced over a 10-year period, reflecting its consumption or obsolescence. The straight-line method evenly distributes the cost of the asset over its useful life, which simplifies the accounting process.
Additionally, Anago management reviews the carrying value of intangible assets annually to check for any impairment. As of December 31, 2024, 2023, and 2022, management determined that no impairment charge was necessary, indicating that the trademark's value has been maintained during those periods.