For the fiscal years 2022 and 2023, was any impairment recognized for Beard Papas' long-lived assets?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Long-lived assets, including intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows (undiscounted and without interest charges) expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of by sale are reported at the lower of the carrying amount or estimated fair value less costs to sell. For the years ended December 31, 2023 and 2022, no impairment is recognized.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas' 2025 Franchise Disclosure Document, the company reviews its long-lived assets, including intangible assets subject to amortization, for impairment when events or changes suggest that the asset's carrying amount may not be recoverable. The recoverability of these assets is assessed by comparing their carrying amount to the future net cash flows expected to be generated, without discounting or considering interest charges.
If an asset is deemed impaired, the recognized impairment is the amount by which the asset's carrying amount exceeds its estimated fair value. Assets intended for disposal by sale are reported at the lower of their carrying amount or estimated fair value, less the costs to sell.
For the fiscal years ending December 31, 2022 and 2023, Beard Papas did not recognize any impairment of its long-lived assets. This indicates that, based on their accounting practices, the value of Beard Papas' assets was not deemed to have declined below their carrying value during those years.