What was the accumulated depreciation for Best Brains' tangible assets as of December 31, 2022?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Particulars | Schedule No. | As at December 31, 2023 | As at December 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Current Assets Cash & cash equivalents | 1 | 262,049.67 | 154,275.10 |
| Inventory | _ | 417,347.00 | 289,840.00 |
| Trade Receivables | 2 | 2,038,407.38 | 1,549,975.79 |
| Other Current Assets Total Currrent Assets | 3 | 255,726.78 2,973,530.83 | 225,576.84 2,219,667.73 |
| Property and Equipment ,net of accumulated depreciation | 4 | 290,790.28 | 268,207.05 |
| Other Assets | 5 | 1,076,049.46 | 958,557.46 |
| Total Assets | 4,340,370.57 | 3,446,432.24 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the accumulated depreciation for tangible assets as of December 31, 2022, was $257,071.73. This figure represents the total depreciation recognized on Best Brains' tangible assets, such as furniture, equipment, vehicles, and buildings, up to that date. Depreciation is an accounting method used to allocate the cost of an asset over its useful life, reflecting the gradual decline in its value due to wear and tear, obsolescence, or other factors.
For a prospective Best Brains franchisee, understanding the accumulated depreciation is crucial for assessing the net value of the company's assets. It provides insight into the age and condition of the assets, which can influence future capital expenditure needs. A high accumulated depreciation relative to the gross block of assets might indicate that the assets are nearing the end of their useful lives and may require replacement soon.
This information is valuable for franchisees as it helps them evaluate the financial health and stability of Best Brains. While the accumulated depreciation itself is a historical figure, it can inform projections about future capital expenditures and the overall financial planning of the franchise. Franchisees should consider this information in conjunction with other financial metrics to gain a comprehensive understanding of the franchise's financial position.