What is the remaining CycleBar trademark intangible asset value for Bft after the partial impairment?
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, after recognizing an impairment loss of $251,000 on the CycleBar trademark intangible asset, the remaining value of the CycleBar trademark intangible asset is $9,649,000. This impairment loss was determined because the carrying value of the trademark intangible asset related to the CycleBar reporting unit exceeded its fair value. The fair value was estimated using a relief from royalty approach, which is considered a Level 3 measurement.
Bft considers this remaining CycleBar trademark intangible asset to be at a heightened risk of future impairment. This increased risk is due to the potential for significant unfavorable changes in assumptions, such as forecasted future cash flows, discount rates, and other macroeconomic factors. This means that if the financial performance or market conditions related to CycleBar worsen, Bft may need to further reduce the recorded value of this intangible asset.
For a prospective Bft franchisee, this information indicates that the financial stability and performance of brands under the Bft umbrella, such as CycleBar, are subject to ongoing evaluation and potential adjustments. While Bft continues to operate and support these brands, franchisees should be aware of the factors that could influence the value of these trademarks and potentially impact the overall financial health of the franchise system. It would be prudent for potential franchisees to inquire about the specific assumptions and forecasts used in assessing the value of the CycleBar trademark and how Bft plans to mitigate the risks of future impairment.