What was the net value of other intangible assets for Batteries Plus Bulbs in the later year?
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 |
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 for the company in 2024 was $210,372. In 2023, the net value of other intangible assets was $225,292. This indicates a decrease in the value of these assets from 2023 to 2024. Intangible assets typically include items like contract rights, trade names, and customer relationships. These assets are amortized over time, which could explain the decrease in net value.
For a prospective franchisee, understanding the composition and valuation of these intangible assets is important. These assets, such as trade names and customer relationships, contribute to the brand's overall value and recognition. The FDD also lists the gross carrying amount of other intangible assets as $386,696. Accumulated amortization for contract rights, customer relationships, and contractual relationships totals $126,612, with accumulated impairment of $49,712.
It is also important to note that the FDD provides a schedule of amortization expenses for intangible assets. The scheduled amortization expense for the year 2025 is $14,920. This means that the value of these intangible assets will continue to decrease over time as they are amortized. A franchisee should consider how these amortizing assets contribute to the long-term value of the franchise and how their value might change over the course of the franchise agreement.