What was the net value of Auntie Annes' intangible assets as of December 31, 2023?
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 Annes' 2024 Franchise Disclosure Document, the net value of their intangible assets as of December 31, 2023, was $495,389. Intangible assets for Auntie Annes primarily consist of goodwill, tradenames, reacquired franchise rights, and franchise agreements.
It is important to note that Auntie Annes does not amortize goodwill or tradenames. Instead, they evaluate these assets for impairment annually or more frequently if circumstances suggest a potential decline in value. This evaluation can be qualitative or quantitative, and if the carrying value of these assets exceeds their fair value, an impairment charge is recorded.
Understanding the composition and valuation of intangible assets is crucial for prospective franchisees as it reflects the brand's strength and market position. These assets, particularly goodwill and tradenames, are key indicators of the long-term value and sustainability of an Auntie Annes franchise.