What was the value of Ben Jerrys' intangible assets, net, in 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 company's intangible assets, net, were valued at $705,000 as of December 31, 2023. 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 and are included on the consolidated balance sheets.
Ben Jerrys conducts an annual impairment test for these indefinite-lived intangible assets on December 31st. This test involves comparing the fair value of the assets with their carrying value. If the carrying value exceeds the fair value, the excess is recorded as an impairment charge. The fair value is determined using discounted cash flows that the assets are expected to generate in the future, which requires management to project revenues, expenses, and cash flows over several years and determine a weighted average cost of capital to use as a discount rate.
It's important to note that the valuation method relies heavily on management's judgment and estimates. Changes in projections, estimates, or the use of different assumptions could significantly impact the estimated fair value of these intangible assets. If future conditions differ from those anticipated, Ben Jerrys' operating results and the balances of indefinite-lived intangible assets could be affected by impairment charges. For prospective franchisees, understanding how Ben Jerrys values and manages these intangible assets is crucial, as it can impact the overall financial health and stability of the company.