What was the net value of Auntie Annes' intangible assets as of December 25, 2022?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| December 31, 2023 | December 25, 2022 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 22,662 | $ 31,196 |
| Restricted cash and cash equivalents - securitization | 29,582 | 27,456 |
| Accounts receivable, net of allowance for credit losses of | ||
| $1,143 and $1,383 in 2023 and 2022, respectively | 37,049 | 31,935 |
| Inventories | 978 | 1,116 |
| Prepaid expenses and other current assets | 9,263 | 8,720 |
| Advertising funds assets | 7,643 | 6,972 |
| Intercompany receivables from Parent | 3,277 | 3,277 |
| Total current assets | 110,454 | 110,672 |
| Property, equipment, leasehold improvements and land, net | 71,199 | 59,734 |
| Operating lease assets, net | 69,535 | 75,786 |
| Goodwill | 122,714 | 120,682 |
| Intangible assets, net | 495,389 | 496,111 |
| Long-term other assets | 13,305 | 13,532 |
| Total assets | $ 882,596 | $ 876,517 |
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the net value of their intangible assets as of December 25, 2022, was $496,111. Intangible assets typically include items like goodwill, trademarks, franchise rights, and franchise agreements. These are non-physical assets that contribute to the brand's overall value.
For a prospective franchisee, understanding the value and composition of these intangible assets is crucial. It reflects the strength and recognition of the Auntie Anne's brand, which can significantly impact the potential success of a franchise location. A strong brand reputation, for example, can drive customer traffic and sales.
It's important to note that these intangible assets are subject to evaluation for impairment, as detailed in the FDD. This means that their value can be adjusted if circumstances indicate a potential decline in their fair value. However, the FDD states that no impairment losses were recorded for goodwill or intangible assets during the fiscal year ended December 25, 2022.
Franchisees should also be aware that the amortization expense of definite-lived intangible assets was $1,822 for the fiscal year ended December 25, 2022. Amortization is the process of expensing the cost of an intangible asset over its useful life, which can affect the company's reported profits. Reviewing these figures helps potential franchisees understand how Auntie Anne's manages and values its brand-related assets.