When did Beard Papas begin depreciating items included in construction-in-progress related to the new office in Cerritos?

According to Beard Papas's 2025 Franchise Disclosure Document, items that were included as construction-in-progress were transferred to leasehold improvements and began to be depreciated when the new Beard Papas store in Cerritos opened in January 2024. This means that the company recognizes the reduction in value of these assets over time, starting from the point the store became operational.

For a prospective franchisee, this information is relevant because it provides insight into how Beard Papas accounts for its assets and manages its finances. Understanding the depreciation schedule can help franchisees better understand the financial statements and how the value of assets is tracked over time. This can be useful for their own financial planning and management.

It's important to note that the depreciation method used by Beard Papas is either straight-line or double declining, over a period of 5 to 10 years for property and equipment. Leasehold improvements are amortized using the straight-line method over the lease term or the asset's useful life, whichever is shorter. This is a standard accounting practice, but the specific choices can impact the reported profitability of the business.