What was the total net block of fixed assets for Best Brains as of December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
for franchise fees and royalties. The Policy for determining when receivables are past due, or delinquent is based on how recently payments have been received and past history of collections.
NOTES TO FINANCIAL STATEMENTS
Property/Equipment and Software Development costs
Property and equipment are stated at cost. For financial reporting purposes, depreciation is provided on the Straight-line/Decli
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total fixed assets (net) as of December 31, 2023, was $246,490. This figure represents the value of Best Brains' fixed assets after accounting for accumulated depreciation. Fixed assets typically include items like buildings, equipment, and vehicles that are used in the operation of the business and have a useful life of more than one year. Depreciation is the reduction in the value of these assets over time due to wear and tear or obsolescence.
For a prospective Best Brains franchisee, this number provides insight into the company's investment in its physical assets. A higher net fixed asset value might indicate a more established company with significant investments in infrastructure, while a lower value could suggest a leaner operation or a business model that relies more on intangible assets. It is important to note that the value of fixed assets can fluctuate due to new purchases, depreciation, and the disposal of old assets.
It's also worth noting that the FDD includes a schedule of fixed assets as of December 31, 2023, which provides a more detailed breakdown of the gross block, accumulated depreciation, and net block for various tangible assets. This schedule lists specific assets such as Ford automobiles, furniture and equipment, Kia automobiles, Mazda Cx5, and warehouse, along with their respective values. Reviewing this schedule can give a potential franchisee a better understanding of the types of assets Best Brains owns and their condition.
When evaluating this information, a prospective franchisee should consider the age and condition of the fixed assets, as well as any potential future capital expenditures that may be required to maintain or replace these assets. Additionally, it's advisable to compare these figures with those of other similar franchise systems to assess whether Best Brains' investment in fixed assets is in line with industry standards.