What was the amount of goodwill recognized through store acquisitions for Beef O Bradys in 2022?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 2024 | 2023 | | |---|---|---|---| | Beef 'O' Brady's Fund | | | | | Franchise marketing and advertising fees | $ 1 ,119,000 | | $ 1,096,000 | | Salaries and overhead charges | 25,000 | 25,000 | | | Brass Tap Fund | | | | | Franchise marketing and advertising fees | 21,000 | 27,000 | | | Salaries and overhead charges | 25,000 | 25,000 | | The changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2023 were as follows:
| Balance, December 31, 2022 | $ 15,162,3
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the goodwill recognized through store acquisitions in 2022 was $744,392. This figure reflects the intangible asset created when Beef O Bradys acquired existing stores, representing the value exceeding the tangible assets purchased. Goodwill can arise from factors like brand reputation, customer relationships, and intellectual property.
For a prospective Beef O Bradys franchisee, understanding goodwill is important because it reflects the financial activity of the company. Monitoring goodwill trends over time can provide insights into the company's acquisition strategies and the value it places on acquiring existing locations.
It's important to note that goodwill is subject to impairment testing, as described in Note 14, which could affect the company's financial statements if the value of acquired stores decreases. This detail is crucial for franchisees to consider when assessing the overall financial health and stability of Beef O Bradys.