What was the total amount of amortization 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) | |
| Construction in process | 1,196 | 346 | |
| Total property and equipment | 21,325 | 21,128 | |
| Other assets | |||
| 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 | |
| LIABILITIES AND MEMBER’S EQUITY | |||
| Current liabilities | |||
| Accounts payable | $ 40,401 | $ 33,297 | |
| Accrued salaries and benefits | 4,928 | 3,618 | |
| Current portion of note payable - store repurchase | 4,050 | - | |
| Accrued warranty | 3,123 | 3,032 | |
| Other accrued expenses | 2,848 | 3,379 | |
| Due to franchisees | 395 | 380 | |
| Current portion of operating lease liabilities | 6,359 | 5,582 | |
| Current portion of finance lease liability | 99 | 44 | |
| Current portion of contract liability | 512 | 1,073 | |
| Total current liabilities | 62,715 | 50,405 | |
| Non-current liabilities | |||
| Finance lease liability, less current portion | 275 | 131 | |
| Contract termination | 188 | 172 | |
| Note payable - store repurchase | 400 | - | |
| Contract liability, less current portion | 8,223 | 7,319 | |
| Operating lease liabilities, less current portion | 53,596 | 48,345 | |
| Total non-current liabilities | 62,682 | 55,967 | |
| Member’s equity | 301,985 | 323,565 | |
| Total liabilities and member’s equity 2024 | $ 4 27,382 2023 | $ 4 29,937 | |
| Merchandise sales | $ 288,296 | $ 268,600 | |
| Cost of merchandise sold | 173,661 | 160,260 | |
| Gross profit | 114,635 | 108,340 | |
| Other operating income | |||
| Franchise fees | 1,647 | 1,895 | |
| Royalty fees | 23,377 | 23,305 | |
| Supplier commissions | 7,940 | 8,201 | |
| Marketing fund | 25,069 | 19,776 | |
| Other fees | 9,256 | 8,962 | |
| 67,289 | 62,139 | ||
| Operating expenses | |||
| Selling and delivery | 12,494 | 11,435 | |
| Occupancy | 11,047 | 10,130 | |
| General and administrative | 90,186 | 86,987 | |
| Advertising | 2,078 | 2,702 | |
| Marketing fund | 23,912 | 18,625 | |
| Depreciation | |||
| 5,865 | 5,328 | ||
| Amortization | 14,920 160,502 | 14,920 150,127 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the total amortization expense for the year 2024 was $14,920. This figure reflects the systematic allocation of the cost of intangible assets over their useful lives, a standard accounting practice. Amortization is a non-cash expense, meaning it doesn't involve an actual outflow of cash, but it does reduce the company's reported income.
For a prospective Batteries Plus Bulbs franchisee, understanding amortization is crucial for interpreting the company's financial statements. It provides insight into how the company values and accounts for its intangible assets, such as trademarks, customer relationships, and proprietary technology. While amortization itself doesn't directly impact cash flow, it affects profitability and, consequently, the financial metrics used to evaluate the company's performance.
It's important to note that this $14,920 figure represents the total amortization expense for Batteries Plus Bulbs as a whole, not necessarily the amortization expense that an individual franchisee would incur. A franchisee's amortization expense would depend on the specific intangible assets they acquire as part of their franchise agreement and the terms under which those assets are amortized. Franchisees should consult with their own financial advisors to understand the potential amortization expenses associated with their specific franchise operations.