For Beehive Homes, what method is used to compute depreciation of property and equipment?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from three to fifteen years.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the company uses the straight-line method to calculate depreciation for its property and equipment. This method evenly distributes the cost of an asset over its estimated useful life.
For Beehive Homes, the estimated useful lives of the related assets range from three to fifteen years. This means that the cost of an asset will be expensed in equal amounts over this period.
Prospective franchisees should understand the implications of this depreciation method, as it affects the reported profitability of the business. The straight-line method is a common and straightforward approach, making it easier to forecast expenses related to property and equipment over time.