What was the accumulated depreciation for Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets | |||
|---|---|---|---|
| Cash and cash equivalents | $ 10,716 | $ 26,197 | |
| Accounts receivable, net | 29,858 | 25,763 | |
| Merchandise inventories, net | 56,393 | 48,576 | |
| Prepaid expenses | 4,426 | 4,665 | |
| Due from marketing fund | 668 | 1,034 | |
| Total current assets | 102,061 | 106,235 | |
| Property and equipment | |||
| Furniture, fixtures and equipment | 15,913 | 14,383 | |
| Vehicles | 1,841 | 1,740 | |
| Leasehold improvements | 5,118 | 4,739 | |
| Software | 26,733 | 23,913 | |
| Finance lease right-of-use assets | 502 50,107 | 220 44,995 | |
| Accumulated depreciation | (29,978) | (24,213) |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the accumulated depreciation for the company in 2024 was $(29,978). This figure represents the total depreciation recognized on the company's assets up to December 31, 2024. In 2023, the accumulated depreciation was $(24,213).
Accumulated depreciation is a contra-asset account that reduces the book value of assets like furniture, fixtures, equipment, vehicles, leasehold improvements, and software. It reflects the wear and tear, obsolescence, or decline in value of these assets over time. The increase in accumulated depreciation from 2023 to 2024 indicates that Batteries Plus Bulbs recognized additional depreciation expense during the year.
For a prospective franchisee, understanding accumulated depreciation is important for assessing the net value of the company's assets and its overall financial health. While depreciation is a non-cash expense, it impacts the company's profitability and tax obligations. Franchisees may want to inquire about the company's depreciation policies and how they affect the financial performance of franchised locations.
It is important to note that this figure represents the accumulated depreciation for the entire Batteries Plus Bulbs organization, not just individual franchise locations. A franchisee's own accumulated depreciation will depend on their specific assets and depreciation methods.