What was the amount of accumulated depreciation and amortization for Ben Jerrys in 2022?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| BEN & JERRY'S FRANCHISING, INC. AND SUBSIDIARY | ||
|---|---|---|
| Consolidated Statements of Cash Flows | ||
| (In Thousands) | ||
| 2023 | 2022 | |
| Cash flows from operating activities: | ||
| Net profit (loss) from operations | 1,161 | (258) |
| Adjustments to reconcile net profit (loss) to net | ||
| cash provided by operating activities: | ||
| Allowance for (recovery of) credit losses | 1 | (61) |
| Depreciation and amortization | 152 | 152 |
| Interest on financing lease | - | (1) |
| Amortization of right of use asset, operating | 77 | 77 |
| Amortization of right of use asset, financing | 36 | 37 |
| Deferred income taxes | 225 | (67) |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (54) | (47) |
| Inventories | (37) | 85 |
| Prepaid expenses and other assets | (127) | 54 |
| Due from parent, net | (4,826) | (3,112) |
| Deposits | 4 | - |
| Accounts payable | (136) | (145) |
| Accrued liabilities | (414) | 140 |
| Operating lease obligations | (76) | (73) |
| Current tax liabilities | 165 | - |
| Due to related party | 4,046 | 3,425 |
| Deferred revenue | (74) | (145) |
| Net cash provided by operating activities | 123 | 61 |
| Cash flows from investing activities: | ||
| Purchases of fixed assets | (8) | - |
| Net cash used in investing activities | (8) | - |
| Cash flows from financing activities: | ||
| Payments on financing lease obligations | (36) | (35) |
| Net cash used in financing activities | (36) | (35) |
| Increase in cash | 78 | 26 |
| Cash at beginning of year | 1,308 | 1,282 |
| Cash at end of year | $ 1,386 | $ 1,308 |
| See accompanying notes to consolidated financial statements |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the depreciation and amortization expenses for 2022 were $152,000. This figure represents the expense recognized during that year for the wear and tear or consumption of Ben Jerrys's assets (depreciation) and the allocation of the cost of intangible assets over their useful lives (amortization). It's important to note that this is the expense for the year, not the accumulated total from previous years.
For a prospective franchisee, understanding depreciation and amortization is crucial for assessing the true profitability of the Ben Jerrys franchise. While these are non-cash expenses, they reflect the decline in value of assets used to generate revenue. Higher depreciation and amortization expenses can reduce the reported profit, which may impact the franchisee's ability to secure financing or attract investors.
It is important to note that the provided financial statements are consolidated, meaning they reflect the financial performance of Ben & Jerry's Franchising, Inc. and its subsidiary. The depreciation and amortization figures may include expenses related to both the franchising operations and any company-owned stores. A franchisee should inquire about the specific assets and intangible assets that are being depreciated or amortized to better understand the nature of these expenses.
While the FDD provides the depreciation and amortization expense for 2022, it does not disclose the accumulated depreciation and amortization. A prospective franchisee should request this information from Ben Jerrys to gain a more complete picture of the company's asset base and financial health. Understanding the accumulated depreciation and amortization can help in evaluating the age and condition of the company's assets and the potential need for future capital expenditures.