What intangible assets does Bhc consider to be long-lived?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
The -lived intangible assets include trademark and goodwill. Goodwill represents the excess of cost over fair value of net identified assets acquired in business acquisitions. The Company elected the alternative accounting for goodwill amortization along with impairment tests as deemed necessary and appropriate. Trademark is considered to have indefinite life and impairment is reviewed along with other long-lived assets.
The Company reviews its long-lived assets for impairment on a periodic basis at least once a year and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the company considers trademarks and goodwill to be long-lived intangible assets. Goodwill is defined as the excess of cost over the fair value of net identified assets acquired through business acquisitions. Bhc has elected an alternative accounting method for goodwill, involving amortization and impairment tests when deemed necessary.
The trademark is considered to have an indefinite life, and its impairment is reviewed alongside other long-lived assets. This means Bhc assesses the value of its trademark regularly to ensure it is not overstated on the company's balance sheet. This is a standard accounting practice to reflect the true economic value of these assets.
Bhc reviews its long-lived assets for impairment at least once a year, or more frequently if events or changes in circumstances suggest that the carrying amount of these assets may not be recoverable. This process ensures that the financial statements accurately reflect the value of Bhc's assets, which is important for investors and franchisees alike.