What was the impairment loss recognized by Bft related to the CycleBar trademark intangible asset during the year ended December 31, 2024?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
s consisted of the following:
| Franchisee | City | State | Contact Information | ||
|---|---|---|---|---|---|
| 1. | Lenderman, Jason | Phoenix | Arizona | jason.lenderman@bodyfittraining.com | Termination |
| 2. | Lenderman, Jason** | Phoenix | Arizona | jason.lenderman@bodyfittraining.com | Termination |
| 3. | Getz, Brian | Elk Grove | California | brian.getz@stretchlab.com | Ceased Operations |
| 4. | Garcia, Marileana* | Richmond Heights | Missouri | marileanagarcia@gmail.com | Ceased Operations |
| 5. | Henderson, Todd; Bibb, Anna | San Antonio | Texas | anya.bibb@bodyfittraining.com | Termination |
| 6. | Henderson, Todd; Bibb, Anna*** | San Antonio | Texas |
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the company recognized an impairment loss of $251,000 related to the CycleBar trademark intangible asset during the year ended December 31, 2024. Bft determined that the carrying value of the CycleBar trademark intangible asset was more than its fair value. The fair value was estimated using a relief from royalty approach, which is considered a Level 3 measurement.
Because this was a partial impairment, the remaining CycleBar trademark intangible asset, valued at $9,649,000, is considered to be at a heightened risk of future impairment. This risk could materialize if there are significant unfavorable changes in assumptions, such as forecasted future cash flows, discount rates, or other macroeconomic factors.
For a prospective Bft franchisee, this indicates that the CycleBar trademark, while still valuable, has been written down due to a reassessment of its fair value. This could reflect changes in market conditions, brand performance, or financial forecasts. The remaining value is sensitive to future economic and business conditions, suggesting that the franchisee's investment in the CycleBar brand carries some level of risk related to the brand's continued performance and valuation.