What is the estimated fair value of the property and equipment acquired for Beef O Bradys?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
transactions whereby the purchase price was allocated to the underlying assets acquired based upon their estimated fair values. Goodwill was recognized to the extent the consideration transferred exceeded the estimated fair value of the assets acquired.
The following summarizes the consideration paid and the estimated fair values of the store assets acquired during 2023 at the acquisition date:
| Consideration: Cash | $ | 714,095 | $ 1,006,367 | |
|---|---|---|---|---|
| Estimated fair value of total consideration transferred | $ | 714,095 | $ 1,006,367 | |
| Estimated fair values of identifiable assets acquired: | ||||
| Property and equipment | $ | 238,035 | $ 738,035 | |
| Goodwill | 476,060 | 268,332 | ||
| Assets acquired | $ | 714,095 | $ 1,006,367 |
Notes to Consolidated Financial Statements December 31, 2023 and 2022
During 2022, the Company purchased, in unrelated transactions, two restaurants from franchisees located in Callaway, Florida (Callaway) and Cantonment, Florida (Cantonment). The purchases were accounted for as business transactions whereby the purchase price was allocated to the underlying assets acquired based upon their estimated fair values.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys FDD, the estimated fair value of property and equipment acquired varies. One instance shows an estimated fair value of $238,035, while another shows $738,035. These figures are associated with total consideration transfers of $714,095 and $1,006,367, respectively.
Additionally, another set of figures indicates a property and equipment valuation of $62,152 associated with a cash consideration of $135,000, and $534,160 associated with a cash consideration of $1,500,000.
These values are part of broader calculations that include other assets like goodwill and inventory, contributing to the total assets acquired. A prospective franchisee should understand the context of these valuations, as they likely represent different acquisitions or valuation scenarios. It is important to clarify with Beef O Bradys the specific circumstances under which these valuations were determined to understand what to expect in their own situation.