What was the net value of Batteries Plus Bulbs' other intangible assets in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Goodwill, net | 35,709 | 25,051 | |
|---|---|---|---|
| Other intangible assets, net | 210,372 | 225,292 | |
| Operating lease right-of-use assets, net | 57,761 | 52,047 | |
| Notes receivable | 154 | 184 | |
| Total other assets | 303,996 | 302,574 | |
| Contract rights 11.5 years | $123,848 | $123,848 | |
| Trade name | Indefinite | 103,875 | |
| Customer relationships 10.5 years | 100,773 | 100,773 | |
| Contractual relationships 8.5 years | 58,200 | 58,200 | |
| Gross carrying amount | 386,696 | ||
| Accumulated amortization | |||
| Contract rights | (52,550) | ||
| Customer relationships | (45,010) | ||
| Contractual relationships | (29,052) | ||
| Total accumulated amortization | (126,612) | ||
| Accumulated impairment | (49,712) | ||
| Trade name | $210,372 | ||
| Scheduled amortization expense for intangible assets for the years ended December 31 are as follows: | |||
| 2025 | $14,920 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the net value of other intangible assets was $210,372 as of December 31, 2024. This figure represents the value of intangible assets like contract rights, trade names, and customer and contractual relationships, after accounting for accumulated amortization and impairment. These assets are not physical but contribute to the brand's overall value and future earnings potential.
For a prospective franchisee, understanding the composition and valuation of these intangible assets is crucial. It provides insight into what they are paying for beyond the tangible assets and inventory. The value of these intangibles reflects the strength of the Batteries Plus Bulbs brand, its market position, and customer loyalty. The FDD also lists the gross carrying amount of other intangible assets as $386,696.
The FDD further breaks down the components of these intangible assets. Contract rights are valued at $123,848, the trade name at $103,875, customer relationships at $100,773, and contractual relationships at $58,200. Accumulated amortization for contract rights is ($52,550), for customer relationships is ($45,010), and for contractual relationships is ($29,052). Accumulated impairment for the trade name is ($49,712). These figures help a franchisee assess the specific value drivers within the Batteries Plus Bulbs business model.
It is important for potential franchisees to monitor how these intangible assets are maintained and protected by Batteries Plus Bulbs, as their value can impact the long-term success of the franchise. Additionally, understanding the amortization schedule for these assets can provide insight into their useful life and ongoing value to the business. The scheduled amortization expense for intangible assets for the year 2025 is $14,920.