What was the accumulated amortization for B Bops as of December 31, 2024?
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, 2024, 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 date. Amortization is the systematic allocation of the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.
For a prospective B Bops franchisee, understanding accumulated amortization is important for assessing the company's financial health and the value of its assets. The fact that the accumulated amortization has remained constant from 2021-2024 at $(18,326) indicates that B Bops stopped amortizing its licensed system as of June 30, 2002, and evaluates the licensed system on an annual basis for potential impairment.
It's also worth noting that the intangible assets being amortized are listed at $37,700. This means that B Bops initially had an intangible asset of $37,700, and $(18,326) of that value has been amortized, leaving a net book value of $19,374. This net book value is what appears on B Bops's balance sheet as the value of its intangible assets. Franchisees should be aware of how these accounting practices affect the reported financials of B Bops.