How does Bft handle gains or losses from the sale or retirement of assets?

According to Bft's 2025 Franchise Disclosure Document, the cost and accumulated depreciation of assets that are sold or retired are removed from the accounts. Any gain or loss resulting from this removal is then included in the results of operations during the period when the sale or disposal occurs. This accounting practice affects how Bft reports its financial performance.

For a prospective Bft franchisee, understanding this accounting treatment is important for interpreting Bft's financial statements. When Bft sells or retires assets, such as software or digital platforms, any resulting gain will increase the reported income for that period, while a loss will decrease it. This can influence key financial metrics and profitability assessments.

For example, the FDD mentions a gain on divestiture of $323 related to the Stride brand and a loss on divestiture of $59 related to the Row House brand, both included within selling, general, and administrative expenses. Additionally, the cash flow statement shows a $232 loss from the disposal of assets in 2024. These gains and losses directly impact Bft's net income and cash flow from operating activities, which are important indicators of the company's financial health and operational efficiency. Franchisees should consider these factors when evaluating the financial stability and future prospects of Bft.