What was the net value of Aplus's property and equipment as of December 31, 2023?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
osts, by performing independent market research and analyses.
/s/ GRANT THORNTON LLP
We have served as the Partnership's auditor since 2015.
Dallas, Texas February 16, 2024
SUNOCO LP CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
| December 31, 2023 | December 31, 2022 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 29 | $ 82 |
| Accounts receivable, net | 856 | 890 |
| Accounts receivable from affiliates | 20 | 15 |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the net value of property and equipment as of December 31, 2023, was $1,836. This figure represents the original cost of Aplus's property and equipment ($2,970) less accumulated depreciation ($1,134). For comparison, the net value of property and equipment on December 31, 2022, was $1,760.
For a prospective franchisee, this indicates the level of investment Aplus has in its physical assets. A higher net value could suggest more substantial infrastructure or recent investments in equipment. However, it is important to consider this figure in relation to Aplus's overall financial health and the capital expenditures required for a new franchise.
Depreciation expense, which reduces the value of property and equipment over time, was $139 million for the year ended December 31, 2023. Understanding these figures can help a franchisee assess the long-term sustainability and potential reinvestment needs of the Aplus franchise system.