What was the net value of Bft's intangible assets as of December 31, 2024?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, tha
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the net value of its intangible assets as of December 31, 2024, was $86,485. This figure represents the value of assets like trademarks and web domains, after accounting for amortization and any impairment. These assets are crucial for Bft's brand recognition and online presence.
For a prospective franchisee, understanding the composition and valuation of these intangible assets is important. Intangible assets are essential for attracting customers and maintaining a competitive edge. The value of these assets can fluctuate based on market conditions, brand performance, and other factors.
It's also worth noting that Bft recorded an impairment loss of $251 related to the CycleBar trademark during the year ended December 31, 2024, indicating that the carrying value of this trademark was in excess of its fair value. Additionally, the company recorded an impairment of $2,233 related to a software asset. These impairments can affect the overall financial health of Bft and potentially impact franchisees.
Therefore, a potential franchisee should inquire about the specific types of intangible assets Bft holds, how they are valued, and what risks might affect their value. Understanding these factors can help a franchisee assess the long-term viability and potential return on investment of a Bft franchise.