What was the approximate depreciation expense for Beard Papas for the year ended December 31, 2024?

According to Beard Papas's 2025 Franchise Disclosure Document, the depreciation expense for the year ended December 31, 2024, totaled approximately $129,000. The FDD also indicates that during the same year, Beard Papas transferred certain assets from construction-in-progress to leasehold improvements due to the opening of a new store in Cerritos. Depreciation for these assets began in January 2024.

For a prospective franchisee, this information provides insight into the accounting practices of Beard Papas and the types of expenses the company incurs. Depreciation is a non-cash expense that reflects the reduction in value of assets over time. Understanding the depreciation expense can help a franchisee better assess the financial health and investment in physical assets of Beard Papas.

The FDD also includes a table that shows the estimated life and value of machinery and equipment, furniture and fixtures, and leasehold improvements. For 2024, the value of machinery and equipment was $59,373, furniture and fixtures was $16,656, and leasehold improvements was $463,277. The total property and equipment was valued at $539,306, less accumulated depreciation and amortization of $128,608, resulting in a net property and equipment value of $410,698.