What is the carrying value of Ben Jerrys' indefinite-lived intangible assets as of December 31, 2024?

According to Ben Jerrys' 2025 Franchise Disclosure Document, as of December 31, 2024, the company's indefinite-lived intangible assets had a carrying value of $705,000. These intangible assets primarily represent franchise territory rights owned by Ben Jerrys in California and North Carolina. These rights are considered to have indefinite lives, meaning Ben Jerrys does not incur costs to renew or extend them.

Ben Jerrys conducts an annual impairment test on these assets as of December 31 to ensure their carrying value does not exceed their fair value. The fair value is determined using discounted cash flows, which involves projecting revenues, expenses, and cash flows over several years and applying a weighted average cost of capital as a discount rate. This process requires significant judgment from Ben Jerrys' management, and changes in projections or estimates could significantly impact the estimated fair value of these intangible assets.

It's important to note that the FDD states there was no impairment of intangible assets for the year ending December 31, 2024. This means that the fair value of the territory rights was at least equal to the carrying value. Prospective franchisees should understand that these intangible assets are subject to impairment if future conditions or management estimates change, which could affect Ben Jerrys' operating results and the balance of these assets.