What was the amount of property and equipment, net, for Annex Brands in 2023?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 12,219,000 | $ 11,992,000 |
| Accounts receivable, net of allowance for doubtful | ||
| accounts of $910,000 and $948,000, respectively | 1,377,000 | 1,642,000 |
| Prepaid expenses and other current assets | 1,220,000 | 704,000 |
| Total current assets | 14,816,000 | 14,338,000 |
| Property and equipment, net | 1,006,000 | 812,000 |
| Right of use assets - operating leases | 1,403,000 | - |
| Deposits and other noncurrent assets | 1,086,000 | 1,122,000 |
| Intangible assets, net | 223,000 | 278,000 |
| Total assets | $ 18,534,000 | $ 16,550,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the net property and equipment for the company in 2023 was $812,000. This figure represents the value of Annex Brands' physical assets, such as equipment, furniture, and leasehold improvements, after accounting for accumulated depreciation and amortization. This number is found within the consolidated balance sheets as of September 30, 2024, and 2023.
For a prospective franchisee, understanding the franchisor's asset values can provide insights into the financial health and stability of the company. A higher net property and equipment value might indicate that Annex Brands has invested in substantial infrastructure and resources to support its franchise network. However, it is important to consider these figures in conjunction with other financial metrics and industry benchmarks to get a comprehensive view.
It's also worth noting that the components contributing to the total property and equipment include equipment and software, furniture and fixtures, and leasehold improvements. These assets are subject to depreciation, which is recognized as an expense over their useful lives. The depreciation expense for 2023 was $555,000. Reviewing these details can help a franchisee understand how Annex Brands manages its assets and accounts for depreciation, which can impact the company's profitability and tax obligations.
Prospective franchisees should consider these figures as part of their due diligence, comparing them to previous years and industry averages to assess the financial trends and performance of Annex Brands. Additionally, it would be prudent to inquire about any significant changes in property and equipment values or depreciation policies that could affect future financial results.