What was the approximate depreciation expense for Ben Jerrys for the year ended December 31, 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 expense for the year ended December 31, 2022, was $152,000. This figure is part of the adjustments made to reconcile net profit (loss) to net cash provided by operating activities in the consolidated statements of cash flows.
Depreciation and amortization are non-cash expenses that reflect the reduction in value of Ben Jerrys's assets over time. Depreciation typically applies to tangible assets like equipment and buildings, while amortization applies to intangible assets like patents or trademarks. These expenses are added back to net loss because they reduce net income but do not involve an actual outflow of cash.
For a prospective Ben Jerrys franchisee, understanding depreciation and amortization is important for assessing the true profitability and cash flow of the business. While these expenses don't require immediate cash outlays, they do reflect the ongoing cost of using assets and the need for future replacements. Monitoring these figures can help franchisees plan for capital expenditures and manage their overall financial performance.