What was the net value of Beard Papas intangible assets in 2023?
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 Beard Papas' 2025 Franchise Disclosure Document, the net value of its intangible assets in 2023 was $1,302. The company's intangible assets include items like website and software, and trademarks. These assets are subject to amortization, which is the process of gradually writing off the initial cost of an asset over its useful life.
The total intangible assets before accumulated amortization were $46,945 in 2023. The accumulated amortization, which represents the total amount of amortization expense recognized up to a certain date, was ($45,643). The net value is calculated by subtracting the accumulated amortization from the total intangible assets.
Understanding the net value of intangible assets can be important for prospective franchisees as it provides insight into the value of Beard Papas' brand and intellectual property. These assets, such as trademarks and software, contribute to the overall brand recognition and operational efficiency of the franchise system. The amortization expense for 2023 was approximately $4,000, which indicates the rate at which these assets are being written off. The estimated amortization expense for the subsequent year, 2024, is $1,302.