What was the depreciation and amortization expense for Bft for the year ended December 31, 2024?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | For the period March 6, 2023 (date of | | | Year Ended December | | inception) to December | | | 31, 2024 | | 31, 2023 | | | Revenue, net: | | | | | Franchise revenue $ | 160,877 | $ | 521 | | Franchise marketing fund revenue | 31,888 | | — | | Other service revenue | 11,789 | | — | | Total revenue, net | 204,554 | | 521 | | Operating costs and expenses: | | | | | Costs of franchise revenue | 19,596 | | 221 | | Selling, general and administrative expenses | 45 | | — | | Impairment of assets | 2,485 | | 180 | | Depreciation and amortization | 6,605 | | 4,596 | | Marketing fund expense | 25,714 | | — | | Total operating costs and expenses | 54,445 | | 4,997 | | Operating income (loss) | 150,109 | | (4,476 | | Net income (loss) $ | 150,109 | $ | (4,476 | | | | | |
Depreciation expense for the periods ended December 31, 2024 and 2023, was $4,460 and $2,844, respectively.
Amortization expense for the periods ended December 31, 2024 and 2023, was $2,145 and $1,752, respectively.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the total depreciation and amortization expense for the year ended December 31, 2024, was $6,605. This figure is part of the operating costs and expenses reported in the company's financial statements. Depreciation and amortization are accounting methods used to allocate the cost of tangible (depreciation) and intangible (amortization) assets over their useful lives.
Specifically, the FDD also breaks down the depreciation and amortization expenses further. Depreciation expense for the year ended December 31, 2024, was $4,460, while amortization expense for the same period was $2,145. These expenses reflect the reduction in value of Bft's assets over time, impacting the company's net income.
For a prospective Bft franchisee, understanding these expenses is crucial as they reflect the financial health and asset management practices of the franchisor. Higher depreciation and amortization expenses could indicate significant investments in assets that are declining in value, while lower expenses might suggest older assets or different accounting strategies. Reviewing these figures in the context of Bft's overall financial performance can provide valuable insights into the sustainability and profitability of the franchise system.