What was the approximate depreciation expense for Ben Jerrys for the year ended December 31, 2023?
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 2023 was approximately $152,000. This figure is derived from the consolidated statements of cash flows, which provide a summary of the cash inflows and outflows of the company. Depreciation and amortization are non-cash expenses that reflect the reduction in value of assets over time.
For a prospective Ben Jerrys franchisee, understanding the depreciation expense is crucial for assessing the overall financial health and profitability of the franchisor. While franchisees do not directly incur this expense on the franchisor's assets, it provides insight into how the franchisor manages its assets and allocates resources. A consistent depreciation expense can indicate stable asset management practices.
It's important to note that this figure includes both depreciation and amortization. Depreciation typically refers to the reduction in value of tangible assets, such as equipment and buildings, while amortization refers to the reduction in value of intangible assets, such as patents and trademarks. The combined figure provides a general overview of how Ben Jerrys accounts for the decline in value of its assets.
Franchisees should consider this information in conjunction with other financial data provided in the FDD, such as revenue, expenses, and net income, to gain a comprehensive understanding of Ben Jerrys's financial performance. Additionally, it may be beneficial for potential franchisees to compare these figures with industry benchmarks to assess how Ben Jerrys's depreciation expense compares to similar franchise systems.