When does Bft begin depreciating its capitalized costs related to digital platforms?

According to Bft's 2025 Franchise Disclosure Document, the company capitalizes eligible costs to acquire, develop, or modify digital platforms that are incurred subsequent to the preliminary project stage. This means that Bft invests in its digital infrastructure by recording these costs as assets on its balance sheet rather than expensing them immediately.

Depreciation of these capitalized costs for Bft's digital platforms begins upon the initial usage of the digital platforms. This indicates that once the platform is operational and in use, Bft starts to recognize the expense of the asset over its useful life. The estimated useful lives for software and digital platforms are between 3 to 5 years, and depreciation is recognized using the straight-line method.

For a prospective franchisee, this accounting practice means that Bft is investing in technology and spreading the cost over several years, which can provide a more accurate picture of the company's profitability. It also suggests that Bft's digital platforms are considered important assets with a lifespan that justifies capitalization and depreciation. The depreciation method (straight-line) ensures a consistent expense recognition over the asset's life.