Over what period does Best Brains amortize software development costs?

According to Best Brains' 2025 Franchise Disclosure Document, the company amortizes its software development costs over a period of five years. This means that the cost of developing software is not fully expensed in the year it's incurred. Instead, Best Brains spreads the expense evenly over five years.

For a prospective franchisee, this accounting practice is relevant because it affects Best Brains' financial statements. Specifically, it impacts the reported net income in any given year. By amortizing software development costs, Best Brains reduces its upfront expenses and shows a higher profit in the short term.

This approach is a standard accounting practice. It aligns the expense recognition with the period over which the software is expected to generate revenue or provide benefits. Franchisees reviewing Best Brains' financial performance should be aware of this amortization policy, as it provides a more accurate picture of the company's long-term profitability related to its software investments.