What is the estimated fair value of the total consideration transferred for Beef O Bradys?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| North Port | Hudson | |
|---|---|---|
| Consideration: | ||
| Cash | $ 714,095 | $ 1,006,367 |
| Estimated fair value of total consideration transferred | $ 714,095 | $ 1,006,367 |
| Estimated fair values of identifiable assts acquired: | ||
| Property and equipment | $ 238,035 | $ 738,035 |
| Goodwill | 476,060 | 268,332 |
| Assets acquired | $ 714,095 | $ 1,006,367 |
| Oldsmar | Bentonville | |
|---|---|---|
| Consideration: | ||
| Cash | $ 400,000 | $ 1,400,000 |
| Estimated fair value of total consideration transferred | $ 400,000 | $ 1,400,000 |
| Estimated fair values of identifiable assts acquired: | ||
| Property and equipment | $ 245,000 | $ 430,295 |
| Inventory | 12,000 | 15,833 |
| Goodwill | 143,000 | 953,872 |
| Assets acquired | $ 400,000 | $ 1,400,000 |
| Consideration: | $ | 135,000 | $ | 1,500,000 |
|---|---|---|---|---|
| Cash | ||||
| Estimated fair value of total consideration transferred | $ | 135,000 | $ | 1,500,000 |
| Estimated fair values of identifiable assets acquired: Inventory | $ | 3,501 | $ | 14,073 |
| Property and equipment | 62,152 | • | 534,160 | |
| Goodwill | 69,347 | 951,767 | ||
| Assets acquired |
During 2023, 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 combinations. Goodwill was recognized to the extent the consideration transferred exceeded the estimated fair value of the assets acquired.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the estimated fair value of the total consideration transferred varies depending on the specific location. For the North Port location, the estimated fair value is $714,095, while for the Hudson location, it is $1,006,367. Similarly, for the Oldsmar location, the estimated fair value is $400,000, and for the Bentonville location, it is $1,400,000. For the Callaway and Cantonment locations, the estimated fair value of total consideration transferred is $135,000 and $1,500,000, respectively. These figures are associated with the purchase of restaurants from franchisees and are accounted for as business combinations.
These values represent the total price Beef O Bradys paid when acquiring these specific restaurant locations. The consideration includes cash, and the difference between the total consideration and the identifiable assets acquired is recognized as goodwill. This goodwill reflects the intangible value associated with the acquired business, such as brand reputation and customer relationships.
For a prospective franchisee, understanding these fair value measurements can provide insight into how Beef O Bradys values existing locations when acquiring them. It also highlights the importance of factors like location and existing assets in determining the overall value of a restaurant. Keep in mind that these figures are from specific transactions in 2023 and 2024 and may not be representative of all potential acquisitions or the value of a new franchise location.
It is important to note that the fair value measurements involve management's judgment and the use of available market information and valuation methodologies. These measurements are subject to change based on different market assumptions and estimation methodologies, which could materially affect the estimated fair values. Therefore, prospective franchisees should consult with financial advisors to fully understand the implications of these fair value measurements.