What was the reported value of Ben Jerrys' intangible assets, net, at the end of 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' 2025 Franchise Disclosure Document, the value of intangible assets, net, at the end of 2023 was $705,000. This figure represents the book value of assets that are not physical, such as trademarks, franchise rights, or intellectual property. For a prospective franchisee, understanding the valuation of these assets provides insight into the financial structure of Ben Jerrys.
It's important to note that these intangible assets represent franchise territory rights owned by Ben Jerrys in California and North Carolina. These rights are considered to have indefinite lives, meaning they are not amortized over a specific period but are instead subject to impairment testing.
The FDD also mentions that the preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported, including the assessment of any impairment of its intangible assets. This means that the actual value of these assets could differ from the reported value, depending on market conditions and other factors. Therefore, while the reported value provides a snapshot of Ben Jerrys' intangible assets, potential franchisees should consider the inherent uncertainties in these valuations.