What is the range of estimated useful lives used for depreciating property and equipment for Beard Papas?

According to Beard Papas's 2025 Franchise Disclosure Document, the company uses a range of estimated useful lives between 5 and 10 years for depreciating its property and equipment. This depreciation is calculated using either the straight-line or double-declining method.

For a prospective franchisee, this means that the cost of assets like machinery, equipment, furniture, and fixtures will be spread out over a 5 to 10-year period for accounting purposes. The specific method used (straight-line or double-declining) will affect how quickly the asset is depreciated, with the double-declining method resulting in higher depreciation expenses in the early years of the asset's life. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life, with a range of 3-10 years.

It's important to note that Beard Papas expenses maintenance and repair costs as they are incurred but capitalizes improvements that significantly extend the useful lives of the assets. This distinction can impact the franchisee's profitability, as capitalized improvements are depreciated over time rather than being fully expensed in the year they are incurred. Additionally, the company reviews long-lived assets for impairment, which could result in recognizing a loss if the asset's carrying amount exceeds its estimated fair value.