What was the reported value of Annex Brands' franchise rights and non-competes in 2024?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
:
| 2024 | 2023 | |
|---|---|---|
| Franchise rights and non-competes | $ - | $ 589,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the reported value of franchise rights and non-competes for the year 2024 is provided in the consolidated financial statements. The value for franchise rights and non-competes is listed as zero for 2024.
In contrast, the value of franchise rights and non-competes in 2023 was $589,000. This indicates a significant change in the valuation of these assets from 2023 to 2024. This could be due to amortization, impairment, or other accounting adjustments.
A prospective franchisee should seek clarification from Annex Brands regarding the reasons for this change in value. Understanding the factors that led to this adjustment is crucial for assessing the financial health and stability of the franchise system.