What was the amortization expense for Beard Papas for the year ended December 31, 2022?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Estimate Life | 2023 | 2022 | ||
|---|---|---|---|---|
| Intangible assets: | ||||
| Website and software | 5-7 years | $ | 16,919 | $ 16,919 |
| Trademark | 7-10 years | 30,026 | 30,026 | |
| Total intangible assets | 46,945 | 46,945 | ||
| Less: accumu |
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the amortization expense for the years ending December 31, 2023, and 2022 were approximately $4,000 and $6,000, respectively. This indicates that Beard Papas's amortization expense decreased from $6,000 in 2022 to $4,000 in 2023.
Amortization is the process of spreading out the cost of an intangible asset over its useful life. For a Beard Papas franchisee, understanding amortization can be important for financial planning and assessing the profitability of the franchise. It is a non-cash expense that reflects the reduction in value of intangible assets such as franchise rights or intellectual property.
The FDD also provides estimated amortization expenses for subsequent years, which can help a prospective franchisee forecast future expenses. These estimates are subject to change and actual results may vary. Franchisees should consult with a financial advisor to fully understand the implications of amortization on their business.