What is the estimated life for the Beard Papas trademark intangible asset?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
cative of the financial position or the results of operations if the Company had operated without such affiliations.
5. Intangible Assets
Intangible assets consist of the following as of December 31, 2023 and 2022:
| Estimate Life | 2023 | 2022 | ||
|---|---|---|---|---|
| Intangible assets: | ||||
| Website and software | 5-7 years | $ | 16,919 | $ |
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the estimated life of the trademark intangible asset is between 7 to 10 years. The FDD also lists the values of the trademark intangible asset for 2022 and 2023. In both years, the value was $30,026.
Intangible assets like trademarks are amortized over their estimated useful life, which reflects how long the asset is expected to contribute economically to the business. The amortization expense for intangible assets was approximately $4,000 for the year ending December 31, 2023, and approximately $6,000 for the year ending December 31, 2022.
For a prospective Beard Papas franchisee, understanding the amortization of intangible assets is crucial for financial planning and assessing the long-term value of the franchise. The trademark's estimated life impacts how these costs are recognized over time, affecting the franchisee's profitability and tax obligations. Franchisees should consult with a financial advisor to fully understand these implications.