What was the accumulated amortization for B Bops in 2022?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Asset | S | |||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | n= | 2023 | 2022 | 2021 | ||||
| Current Assets | ||||||||
| Cash | $ | 542,855 | $ | 467,403 | $ | 351,509 | $ | 170,478 |
| Franchise fee receivable | 45,183 | 14,761 | 13,029 | 13,231 | ||||
| Receivable - related party | 32,380 | |||||||
| Total Current Assets | $ | 588,038 | $ | 482,164 | $ | 364,538 | $ | 216,089 |
| Fixed Assets | ||||||||
| Intangibles | $ | 37,700 | $ | 37,700 | $ | 37,700 | $ | 37,700 |
| Accumulated amortization | (18,326) | (18,326) | (18,326) | (18,326) | ||||
| Total Fixed Assets | $ | 19,374 | $ | 19,374 | $ | 19,374 | $ | 19,374 |
| Other Non-Current Assets | ||||||||
| Note Receivable - Shareholder | $ | 194,917 | $ | 132,338 | $ | 129,116 | $ | 125,973 |
| Total Other Non-Current Assets | $ | 194,917 | $ | 132,338 | $ | 129,116 | $ | 125,973 |
| Total Assets | $ Liabili | 802,329 ties and Stock | $ holder | 633,876 s Equity | $ | 513,028 | $ | 361,436 |
| Current Liabilities | ||||||||
| Accounts Payable | $ | 7,596 | $ | _ | $ | 487 | $ | _ |
| Accounts Payable - Affiliate | - | - | , | 20,608 | , | 20,608 | ||
| Total Current Liabilities | $ | 7,596 | $ | $ | 21,095 | $ | 20,608 | |
| Total Liabilities | $ | 7,596 | $ | $ | 21,095 | $ | 20,608 | |
| Stockholder's Equity | ||||||||
| Common Stock | $ | 1 | $ | 1 | $ | 1 | $ | 1 |
| Additional Paid-in Capital | 149,999 | 149,999 | 149,999 | · | 149,999 | |||
| Retained Earnings | 644,733 | 483,876 | 341,933 | 190,828 | ||||
| Total Stockholder's Equity | $ | 794,733 | $ | 633,876 | $ | 491,933 | $ | 340,828 |
| Total Liabilities and Stockholder's Equity | $ | 802,329 | $ | 633,876 | $ | 513,028 | $ | 361 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the accumulated amortization as of December 31, 2022, was $18,326. This figure represents the total amount of amortization expense that has been recognized against the value of B Bops's intangible assets up to that point in time. Intangible assets, in this context, likely refer to the franchise license or other similar rights that B Bops possesses.
For a prospective franchisee, understanding accumulated amortization is crucial for assessing the financial health and stability of B Bops. While amortization is a non-cash expense, it reflects the gradual decline in the value of intangible assets over time. A high level of accumulated amortization relative to the original cost of the asset might indicate that the asset is nearing the end of its useful life or that its value has been significantly impaired. However, in B Bops's case, the intangible assets and accumulated amortization have remained constant from 2021-2024.
It's important to note that the amortization policy of B Bops changed in the past. Initially, the licensed system was amortized over 15 years, but amortization ceased as of June 30, 2002, in accordance with authoritative guidance for intangible assets with indefinite lives. Since then, B Bops evaluates the licensed system annually for potential impairment, and no impairment was recorded for the year ended December 31, 2024. This suggests that B Bops believes its licensed system retains its value and is not subject to ongoing amortization.
Therefore, while the accumulated amortization remains at $18,326 as of 2022, the more critical factor for a potential franchisee to consider is the ongoing assessment of impairment. This assessment reflects B Bops's view of the long-term value and sustainability of its brand and licensed system. A prospective franchisee should inquire about the details of these impairment assessments to gain a deeper understanding of the franchisor's financial strategy.