What were the net fixed assets for Ben Jerrys as of December 31, 2023?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| BEN & JERRY'S FRANCHISING, INC. AND SUBSIDIARY | ||
|---|---|---|
| Consolidated Balance Sheets | ||
| (In Thousands) | ||
| 2023 | 2022 | |
| Assets | ||
| Current assets | ||
| Cash | $ 1,386 | $ 1,308 |
| Accounts receivable, allowance for credit losses of $45 | 375 | 321 |
| and $105 at December 31, 2023 and 2022, respectively | ||
| Due from parent, net | 23,241 | 18,415 |
| Inventories | 219 | 182 |
| Prepaid expenses and other current assets | 416 | 289 |
| Total current assets | 25,637 | 20,515 |
| Deposits | - | 4 |
| Deferred tax assets | 276 | 500 |
| Fixed assets, net | 546 | 688 |
| Right of use asset, operating | 346 | 423 |
| Right of use asset, financing | - | 36 |
| Intangible assets, net | 705 | 705 |
| Total assets | $ 27,510 | $ 22,871 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the net fixed assets as of December 31, 2023, were $546,000. This figure represents the value of Ben Jerrys's property, plant, and equipment, net of accumulated depreciation. These assets are essential for the company's operations and long-term financial health. The corresponding value for the previous year, 2022, was $688,000. This suggests a decrease in net fixed assets from 2022 to 2023.
For a prospective franchisee, understanding the net fixed assets of Ben Jerrys provides insight into the company's investment in its physical infrastructure. A higher value of net fixed assets might indicate a greater commitment to maintaining and upgrading facilities, which could benefit franchisees through improved operational support and brand image. However, it's also important to consider the depreciation expense associated with these assets, as it can impact the company's profitability.
The decrease in net fixed assets from $688,000 in 2022 to $546,000 in 2023 could be due to several factors, such as depreciation, asset disposals, or a reduction in capital expenditures. It is important to note that these figures are presented in thousands, so the actual values are significantly larger. A potential franchisee should inquire about the reasons for this decrease to assess whether it reflects a strategic decision or potential financial challenges.
Reviewing the notes to the consolidated financial statements for Ben Jerrys is crucial to gain a deeper understanding of the composition and changes in fixed assets. Additionally, comparing these figures to industry benchmarks and the financial performance of other franchise systems can provide a more comprehensive assessment of Ben Jerrys's financial stability and investment in its infrastructure.