What was the gross carrying amount of Aplus liquor licenses as of December 31, 2022?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
it exceeded its carrying amount. No goodwill impairment was identified for the reporting units as a result of these tests.
Intangible Assets, net
Gross carrying amounts and accumulated amortization for each major class of intangible assets, excluding goodwill, consisted of the following:
| December 31, 2023 | December 31, 2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Carrying Amount | Acc |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the gross carrying amount of liquor licenses as of December 31, 2022, was $12. This indicates the original cost of the liquor licenses that Aplus owned at that time, before any amortization or write-downs.
For a prospective Aplus franchisee, this figure provides insight into the company's asset valuation and management practices. While the $12 figure itself is relatively small, it's important to understand how Aplus accounts for its intangible assets, including licenses, as these can be critical for operating certain locations. The fact that the accumulated amortization is zero suggests these licenses may be indefinite-lived, meaning Aplus does not expect them to expire or diminish in value over time.
It's worth noting that the net book value of the liquor licenses is also $12, which aligns with the gross carrying amount since there is no accumulated amortization. This information, while seemingly minor, contributes to a broader understanding of Aplus's financial health and asset management strategies, which can be useful for potential franchisees evaluating the overall stability and transparency of the franchise system.